What can we expect for the real estate market in 2022? Hey there, Jenevieve Croall here with JLUX Homes Realty Group. As we say goodbye to a very busy 2021, it’s time to turn attention to what lies ahead for us in the new year. First, let’s take a look at Home Prices. While record-low inventory sent home values rocketing in 2021, it looks like stock levels are starting to catch up. Prices will continue to rise – just slightly slower, at around 5.8%, compared to the 11.7% average seen in 2021. And most experts predict that we won’t see depreciating prices anytime soon. What will Home Inventory look like in 2022?
2021 was an extremely tough year for housing supply, as buyers far outpaced sellers in most markets. Housing inventory could improve slightly this year but will likely remain a challenge for years to come. The housing market will remain competitive for buyers, particularly for those looking for homes in the entry-level price range. As for Mortgage Rates: 2021 saw the lowest mortgage interest rates in history. And we can assume that interest rates are unlikely to drop any more for a long time. Rates are predicted to hold steady with a chance of a modest rate increase by the end of the year.
The low-interest rates mean that even though homes are a little more expensive this year than last, they are still extremely affordable. All in all, 2022 is shaping up to be a whirlwind year, with predictions of home sales hitting their highest level in 16 years, rising 6.6 percent year-over-year. Remember, great rates mean that buying in 2022 is still very affordable, and if you’re thinking of selling this year, it’s a great time to take advantage of good price appreciation and willing buyers. Give me a shout to discuss how today’s market affects your future real estate plans. Thanks for watching, and here’s wishing you a fabulous 2022!