Out of all of the industries out there, the real estate industry is still one of the most unpredictable. Even during the height of the COVID-19 pandemic, the demand for homes soared. Because of this, the price of newly listed homes climbed over 32%.
Now that we’re halfway through the year, many people may now be looking into buying a home next year. So, will anything change in 2022? Is 2022 a good year to buy a home? While we don’t have the answers, we do have some reliable predictions.
Here are the top 4 real estate predictions to expect next year. Read these predictions to know if buying or selling a house next year is the right move.
1. More Buyers
While 2020-2021 experienced a surge in home buying, there were other buyers who were thrown off from purchasing a home. However, that will change in 2022. With the home buying surge over, more buyers are coming out of the woodwork to purchase a new home.
How many new buyers there are is the question. We’re not sure if we’ll see new buyers in droves or if the market will stay steady throughout the year. In addition, we’re unsure if home prices will stay at the all-time highs they were at the last two years or if they will decrease.
However, buyers in 2022 will have an unfortunate obstacle…
2. Mortgage Rates Will Increase
During 2020-2021, the mortgage rates hit an all-time low: 2.93% for a 30-year mortgage. Mortgage rates dropped because of the lacking economy. But now with economic growth, mortgage rates will climb back up again.
Fortunately, they won’t be drastically high. Rates will increase to 3.4% by the end of 2021 and will increase to 3.8% by the end of 2022. In addition, the slight rise in mortgage rates will offset the high home prices and buyer competition.
3. Cheaper to Build a Home
If you want nothing more than to build your dream home, then you’re in luck! The cost of construction is expected to decrease, making it more affordable to build a home.
This is because of the supply chain issues the construction and manufacturing industries faced in 2020-2021. During the height of the pandemic, there was a short supply of building materials, causing the cost of lumber and building materials to increase. Now with economic growth, we’re expected that these materials will go back down to normal price.
4. Still a Great Time to Sell
Because of the reasons mentioned and the continued economic growth, 2022 will still be a good year for selling a house. Even though home prices will decrease and growth will be slow, 2022 is a good time to sell if you never sold your home in 2020-2021. Just make sure you hire a trusted realtor such as Lee Garland.
Use These Real Estate Predictions in 2022
The real estate industry surprised us all during the pandemic. The market was strong, attracting buyers who paid top dollar for homes. While real estate in 2022 is unclear, these real estate predictions will give us more insight into the market.
Continue reading our blog for the latest news and advice.