Predictions for Housing in 2022

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Real Estate

As we collect data and forecast housing trends in 2022, here's what to expect in the coming year:

Danielle Hale, chief economist:

"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 ages 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."

Sue Yannaccone, chief executive officer and president of Realogy:

"Real estate is entering a new era.  The pandemic-fueled frenzy we saw over the last 24 months is giving way to a new kind of real estate market-one that will be driven by solid and sustainable demand we haven't seen in over a decade.  Prior to 2020, there had been around 5 to 5.5 million resale home transactions a year.  In 2022, demand is not waning.  The changes to Americans' working and living behavior are also compounded by demographic shifts giving way to a new generation of homebuyers.  In 2022, we may very well experience the year of the Millennial home buyer, with Gen Z (already in their early 20s) close behind.  With remote and hybrid work decisions freeing these populations from the constraint of a daily commute and an increasing demand in home office space, we expect to see this demographic evolution fuel the market."

Lawrence Yun, chief economist for the National Association of Realtors:

"Mortgage rates will drift 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."

In short, 2022 should be a strong year for housing. Real estate has been a historically safe investment and a hedge against inflation. We at Shaffer Realty and Shaffer Real Estate are here to help you on your real estate journey.  To schedule a private consultation, email us and we will connect you with one of our real estate experts.