Updated: Jan 16
The pandemic ignited a home-buying frenzy as the decade-long housing
shortage converged with historically-low mortgage rates, shifting workplace
dynamics and new opportunities for young buyers to pursue their first homes.
As we near the end of 2021, here’s a look at the expectations of real estate
experts for 2022.
Some of the Top Experts:
Danielle Hale, Realtor.com chief economist:
We expect a whirlwind 2022 for the housing market. Home sales are expected to increase another 6.6% and home prices to rise another 2.9% on top of 2021 highs. A gradual uptick in mortgage rates will make affordability a top consideration for home buyers, especially the 45 million Millennials aged 26 to 35 who are at prime first-time home buyer age. Demand from these young households will keep the market competitive and fast-paced despite a small uptick in housing inventory as builders continue to ramp production, increasing single-family starts by 5% in 2022.
Nick Bailey, president of RE/MAX, LLC:
Home buyers should find the coming months to be more advantageous than any time in 2021. While sellers remain in a very strong position, price stabilization and the continuation of competitive interest rates may bring some welcome relief to buyers in the new year. Inventory is and likely will remain a challenge for some time as shortages in labor and materials, as well as general supply chain challenges, delay new construction. Last year was a strong year for sales and 2022 should continue to be. As the market begins to rebalance and buyers who were sitting on the fence decide to get in the game.
Lawrence Yun, chief economist for the National Association of Realtors: Mortgage rates will drift higher as the Fed scales back the purchase of the mortgage-backed securities and raises short-term interest rates, which are likely to hit 3.7% by the year-end 2022 on a 30-year rate after hovering at 3% for most of 2021. Home sales will notch lower by 2% in 2022, principally because of higher mortgage rates. Home sales will not crash thanks to job gains, investor demand and the work-from-home reshuffle in residential location choice. Home prices will only rise 3% to 5% nationally.
Robert Dietz, senior vice president and chief economist for the National Association of Home Builders:
With housing demand solid and existing home inventory too low, home construction should continue at a strong pace in 2022, according to NAHB forecasts. Single-family builder confidence at the end of 2021 is high, registering a level of 83 on the NAHB/Wells Fargo Housing Market Index. We expect a slower growth rate for home building in 2022, but the level of single-family housing starts will be about 25% higher than it was in 2019, pre-Covid.
This week work on projects that challenge you, but for which you have aptitude. Aim to reach a state of "flow" in the workspace.
WORDS OF WISDOM:
Opportunities don't happen. You CREATE them.
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