The interest rate for a 30-year fixed mortgage is the lowest it’s been in over 20 years. But how long will this trend last? And what can home buyers and sellers expect for the future?
It’s impossible to tell exactly what’s in store for the housing market in 2022. But we can make some educated predictions based on the current state of the real estate market.
Whether you’re selling your house or buying a house this year, it’s important to stay up-to-date with the housing market.
So, consider this your introduction to housing market predictions 2022.
1. Residential Real Estate Market Will Cool Off
As individuals and families start to travel more and return to school and work, the demand for residential real estate may slow down. The spike we saw in 2020 will level off and there will be fewer people migrating from cities to suburbs for bigger homes. This is good news for homebuyers that struggled with limited inventory and competitive offers in 2020.
2. Higher Demand for Multifamily Homes
Single-family homes were in high demand in 2020 and the prices went up significantly. So, those that couldn’t afford a single-family home started looking at multifamily houses.
As a result, in 2022, there could be a decline in the availability of multifamily homes as well as a rise in rent. This trend is expected to last at least a year.
3. Rental Market Will Remain Hot
When the housing market boomed in 2020, homes sold for above the asking price all over the country. Fewer people could afford to buy, so they chose to rent. And while the residential real estate market may cool a bit, it won’t be enough to stop the rental trend from rising.
4. Fewer Showings
There has already been a slow decline in the number of houses on the market. For home buyers, this means fewer showings but it also could mean a better price because there are fewer offers on the house.
It’s still a good idea to get pre-approved for a mortgage so that you’re ready to make a competitive offer when you see your dream home.
5. Selling to Investors
Some individuals and families with a second home chose to sell in 2020 to take advantage of the high demand. They were able to sell their homes for a lot more than they would have a year ago. Real estate investors also made offers to home sellers.
If you are interested in selling your home to an investor, check out 1800SellNow.com
Housing Market Predictions 2022
There you have it – 5 housing market predictions 2022. While the residential market may cool a little, the demand for multifamily houses and rental properties will remain hot. You can expect to see fewer showings and fewer offers for available homes. And finally, there may be an increase in homes sold to investors.
Looking for tips on house hunting or selling? Check out the other awesome content on my site!