Here’s Why 2022 May Be a Better Market for Home Buyers
Last Updated on November 4, 2021 by Maggie Sutton
Double-digit home price appreciation that we’ve seen in the last 12 months shouldn’t be read as an indication that there is trouble ahead for the housing market in 2022. In fact, economic forecasts call for continued strength in US housing as we look into the New Year.
Here’s what the numbers say: in the next 15 months—through the end of 2022—Goldman Sachs is forecasting U.S. home prices will soar another 16%. Driving the sustained increase in prices is more of the same supply/demand imbalance that drove prices in 2021. Housing inventories remain historically tight, while homes remain relatively affordable despite the recent price increases. Surveys of home buying intentions remain at healthy levels.
This sustained demand comes even as mortgage rates tick up, they remain low enough to keep homes relatively affordable despite the recent price increases. That’s because mortgage rates have been at historic lows — dipping periodically to below 3 percent. The Mortgage Bankers Association (MBA) is forecasting that the 30-year fixed rate will increase to 3.1 percent by the end of 2021 and 4.0 percent by the end of 2022. Freddie Mac expects the average rate for a 30-year fixed home loan to reach 3.4% by the end of 2021, and 3.8% by the end of 2022.
2022 Inventory Outlook
The silver lining is that there’s also evidence that home inventory is also beginning to tick up, albeit slightly. Ever since the second half of 2020, homebuyers across the U.S. have struggled with tight supply conditions within the market.
That’s starting to change.
On September 30, Realtor.com published a real estate market report with data for the nation’s 50 largest metro areas that showed a measurable increase in total housing market inventory nationwide. In September, there were 646,053 homes listed for sale on the company’s website.
That was the highest number of properties for sale we’ve seen in a long time. So, if you are among would-be homebuyers sitting on the sidelines, 2022 housing market may be your year.
Get Started Now
You don’t have to wait until 2022 to get a start on buying a house. Sign up to talk to a Homes for Heroes real estate agent today. You can discuss your timeline with your agent, including if you want to wait until 2022 to start looking. Your agent can make sure all your ducks are in a row when you’re ready to start looking.
When you work with a Homes for Heroes affiliate agent, you’ll also get Hero Rewards after you buy your home. If you’re in law enforcement, healthcare, education, active or retired military, firefighting, or EMS, you’re qualified to get on average $2,400 back after you buy your home. It’s just our way of saying thank you for your service to your community!