Undoubtedly – the House market has been hot in 2021. But if you haven’t moved this year and are considering buying or selling – or both – next year, you want to know what to expect.
On November 10, the 30-year fixed-rate mortgage rate was 2.98%, which is the lowest rate since September 23. If you are considering buying a house, you are sure you are glad that prices have not skyrocketed, but will it last?
Some real estate professionals have looked into the direction they think the real estate market will take in 2022. Here’s what they had to say.
Big cities could explode again
Jonathan Spears, real estate agent and founder of the Spears Group based in Santa Rosa Beach, Florida, said he believes market gains in the US will continue through 2022 and expects the largest city markets hikes in the Northeast. in the southeast, and the cities of the west coast.
“While some market forecasts predict that market values will increase by more than 15%, real estate markets may have slowed as the market has increased by more than 30%. Market last year,” he said. “Due to the low inventory, we won’t see high take-up rates because the inventory doesn’t exist.”
However, he expects the US housing market to grow strongly overall.
The internal rate of appreciation could slow down
Andrina Valdes, COO of Cornerstone House Lending, Inc., cited statistics from various real estate authorities, including Fannie Mae, which expects a 7.4% increase in value in 2022, and the National Association of Realtors, which expects an increase in value of 2.8% to the current. 4.4% as new homes, to explain the housing price forecast for 2022.
“While home values are not expected to depreciate, the rate at which House values are rising is expected to decline,” she said.
Mortgage rates may rise, but it may still be a good time for buyers
Valdes said mortgage rates are expected to rise slightly over the next year, but remain historically low, while buyer demand is expected to remain strong.
“The market is expected to cool down from 2021, but it will remain active,” she said. “It could be a sales market in many areas, but there are likely to be more options and routes for House.
So she said it’s always a good time to buy a house.
“An overly limited buyer should be able to get a lot more options,” she said. “Experts also confirm that the real estate market is not deteriorating at all in 2022: the conditions we see are not comparable to those that led to the 2008 crisis”.
Danielle Hale, the chief economist at Realtor.com, agreed that buyers are likely to get more for their money in 2022.
“Domestic demand prices slowed in the second half of 2021, with average price growth rising from 17.2% in April to just 8.6% in October,” she said. “Sales prices have dropped a little, but not that fast. “
You said, however, that it should change.
“With prices close to all-time highs and mortgage rates expected to rise, we expect this price slowdown to continue,” she said.
Good news for those on both sides of the housing market, Jason Gelios, a real estate agent in southeastern Michigan, said the housing market will continue to move in favor of homebuyers in 2022 if prices stabilize. but they remain strong.
“Many unsuccessful first-time homebuyers will have the opportunity to compete with stronger homebuyers during the hyperactive seller market to bid for House in 2022,” he said. “Buyers should expect to pay close to the asking price, however, as real estate stock is likely to be lower than it should be.”