UNDERSTANDING THE HOUSING MARKET PREDICTIONS FOR 2022
It’s important to remember that housing market predictions are just that, predictions. That being said, a whopping 69% of the real estate experts polled expect the same thing from the upcoming housing market. 2022 is expected to surpass this year in terms of inventory available early in the year. Another promising component of the housing market forecast for 2022 is that home value appreciation should balance out somewhat. This hopefully means that housing prices won’t continue to shoot up.
WHAT DO THESE HOUSING MARKET PREDICTIONS MEAN FOR NEW CONSTRUCTION?
We’ve all had over a year of facing the most unexpected circumstances. In the new construction industry specifically, we faced supply challenges, delays, labor shortages and soaring prices on raw materials. With the year that the resale housing market has had, the sense of security that comes with new construction is appealing to more purchasers. As such, the new construction industry is working to keep up. More new construction starts can help offset the low inventory issues that plagued 2021 and give home buyers more options in 2022.
THE HOUSING MARKET FORECAST FEATURING: BIDDING WARS
The housing market trends in 2021 showed unprecedented risk-taking in the resale home market. Many buyers took their chances by waiving inspections and contingencies in order to close the deal. And while housing market predictions anticipate that this should settle down somewhat in 2022, multiple offers and bidding wars aren’t an entirely new phenomenon in the world of resale. Especially for those eye-catching, just-gotta-have-it homes. So if after this year, you’re ready for a bit of certainty during your homebuying experience, new construction could be a better bet.
KEEP YOUR EYE ON THE HOUSING MARKET: 2022 CAN BE THE YEAR OF HOMEOWNERSHIP
Despite all of the most expert housing market predictions, 2022 could still be a year that throws us curve balls. We can’t bank on current interest rates or housing prices. Before you make any plans based on housing market predictions, talking with one of our Preferred Lenders can help you determine your purchasing power. They can help you understand all of the costs that go into the initial home purchase so that you can start (or continue) to save for a down payment and closing costs. A lender might also point out opportunities to improve your credit score, which can be especially helpful for your approval.
Sometimes the housing market feels like it has a mind of its own. But by understanding the basics of supply and demand, keeping an eye on homes for sale in your area (and how quickly they sell!), and leaning on knowledge from the experts — we can balance housing market trends and predictions with our own plans and goals.