What does this year have in store for the housing market? Here is a breakdown of what 2022’s Housing Market Forecast has in store!

Mortgage Rates  

According to Keeping Current Matters, mortgage rates are projected to rise in 2022, yet remain historically low comparatively. If you’re thinking about starting your homeownership journey, it’s best to take advantage of today’s rates before they continue to increase! Start your home buying journey today by connecting with one of our expert team members.

Source: 2022 Housing Market Forecast [Infographic].” Keeping Current Matters, December 15, 2021. https://www.mykcm.com/2021/12/17/2022-housing-market-forecast-infographic/.

 Price Growth  

Similarly, Zillow economists predict there will be strong price growth and sales volume in 2022. Furthermore, sellers will continue to keep the upper hand due to low mortgage rates and elevated demands. Buyers can expect to see bidding wars during the spring and summer season.

On the contrary, Northrop Grumman states buyers and sellers alike may not necessarily see home price growth in their local market. Home prices are calculated on a national average, meaning many buyers and sellers may not experience changes based on their location. Below is a prediction of the markets that are expected to see an increase in home prices in 2022!

Demographics 

According to CNBC, we can expect to see Millennials and Gen Z at a disadvantage compared to older generations when it comes to buying a house. Moreover, home prices are increasing, and older generations are staying in their homes longer. Younger buyers may struggle more to save for a down payment.

Home Sales   

Despite rising rates and home prices, buyer demand will continue to remain strong, according to Keeping Current Matters. Many buyers will want to take advantage of today’s rate and prices before they climb, which is projected to result in a strong year for home sales. If you’re considering purchasing a home, learn more about our home loan products we have to offer.

Source: 2022 Housing Market Forecast [Infographic].” Keeping Current Matters, December 15, 2021. https://www.mykcm.com/2021/12/17/2022-housing-market-forecast-infographic/.

Additionally, according to Realtor.com, the COVID pandemic has caused a demand for more housing space. Consequently, suburban homes will continue to take the lead over homes in large, urban areas. Shifted workplace dynamics have created new homebuying opportunities; with many companies shifting to remote work, there could be an impact on home searching and preferences. Furthermore, workplace flexibility has enabled many homebuyers to broaden their search for locations where homes are more affordable.

Market Growth  

Based on a combination of strong forecasted home value growth, high job growth, and fast-moving inventory, below is  Zillow’s Hottest Markets of 2022. These markets have not been particularly sensitive to interest rates and the economy overall, making them ideal locations for homebuyers!

If you’re looking to purchase a home in 2022, don’t wait! It’s the perfect time to start your home buying journey.

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