As we collect data and forecast housing trends in 2022, here's what to expect in the coming year:
Danielle Hale, Realtor.com 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 today-shafferrealty@gmail.com and we will connect you with one of our real estate experts.