It was the rollercoaster ride of a lifetime for buyers in the 2021 real estate market - where twists, turns, and upside-down loops filled the course.
While the wild ride isn't over just yet (sellers still have an edge going into 2022),
first-time buyers might get a break.
Those looking to buy a home in 2022 should expect to deal with a seller's market for yet another year.
The impact of pandemic restrictions and perks such as remote working will lead to a situation where buyer demand outpaces housing supply.
The Home Prices
The growth of home values in 2021 impacted affordability and as a result the home prices will increase at a more moderate pace in 2022 due to increased inventory.
As the real estate market stabilizes over this year, home price growth should more closely follow consumer price inflation.
Rising mortgage rates will alleviate demand
The buyers can lock in a low mortgage rate when new inventory hits the market in the spring.
However, higher interest rates will pose new affordability challenges.
As new housing supply hits the market, competition will ease
Homebuilders have a strong business motive to develop more in order to meet customer demand.
This year, more single-family houses are projected to join the market, giving buyers greater freedom and time to consider their options.
Mortgage rates, housing prices, and home worth will all gradually climb.
Despite the fact that many components of the housing market will decelerate, home prices will continue to rise. In 2022, as more individuals put their houses for sale, these residences may stay on the market for longer. Despite this, buyers will need to act quickly because the housing market remains a seller's market due to demand outpacing supply.