Real estate predictions for 2022
Will the 2022 real estate market be better, worse, or a repeat of this year? realtor.com recently published their nationwide predictions, and summarized we can expect a “whirlwind year”.
Demand for housing will still be strong, supply of inventory will remain almost the same, and the mortgage rate will increase. The experts at realtor.com crunched the numbers:
- 45 million millennials, between the ages of 26 to 35, will be looking to purchase new homes.
- 16-year high in home sales.
- 3.8% increase in DC-area home prices. Nationally, housing prices will increase at a slower rate than 2021 prices, as Americans have reached an affordability cap.
- 0.3% increase in the amount of housing available, as limited inventory will continue.
- 3.3% mortgage rate predicted to average throughout the year.
- Mortgage rate expected to rise to 3.6% by the end of the year.
Suburbs are expected to continue to be in high demand, as the need to live near the office in a city or city-adjacent has become unnecessary for remote workers.
Competition will still be tight, but there are a few things you can do now to help you win a bidding war:
- Determine your budget.
- Find a trusted realtor.
- Build your credit score.
- Save for an earnest money deposit and down payment.
- Get pre-approved for a loan.
- Find a home that fits your budget.
With the current housing market, you may not get everything on your ideal-home wish list, but you can find a home that suits your needs.