As we enter the New Year, it’s a time for predictions. What will the 2022 real estate market look like? If you are planning on buying or selling this year, we know this question is top of mind.
While no one can predict the future, it seems we may see some similarities to 2021. According to Danielle Hale, Chief Economist at realtor.com, 2022 will continue to be a seller’s market. However, if you watch her recent video post, she does note some shifts.
Yes, Hale mentions that homes will continue to move quickly and prices will rise; however, she also points to the fact that there will be less competition overall. Hale adds that price growth will return to a more normal rate, but we do have to consider that prices are starting at 2021’s highs. The market will also see rising mortgage rates and more inventory.
Fueling the market in 2022 will be a new generation of homebuyers. Millennials will be a key buying demographic in 2022 as many will be at the prime age for buying a home. This will help fuel the market; as well as the trend of suburban living. Many millennials, and homebuyers in general, will continue to search for their forever home outside the city; a trend accelerated by the pandemic. The suburbs tend to offer more flexible space to live, work and play, and as people continue to spend more time at home the need for this space will be prevalent.
A final note from Hale, rising rents will also push more buyers into the market this year as they weigh the benefits of renting versus owning (stay tuned we are working on a post on this topic).
As stated above, nothing is set in stone but these are some things to consider as we look ahead into 2022. As always, we are here to help navigate the market in our area and would love the opportunity to help with your next move.