Here are some quotes from a few market experts about real estate in 2022.

I hope you had a fantastic holiday season and a great start to the new year. The one question I kept hearing over and over at holiday parties the last few weeks was, “What does 2022 have in store for the housing market?” I’m diving deeper into the answer today by looking at what some of the experts are saying. Here are three recent quotes that I highlighted:

Odeta Kushi, the Deputy Chief Economist at First America, had this to say about interest rates: “Consensus forecasts put rates at about 3.7% by the end of next year. So, that’s still historically low, but certainly higher than they are today.”

Prices are still going to rise in 2022, albeit at a slower pace.

Danielle Hale, Chief Economist at Realtor.com, recently spoke on the 2022 home-buying market: “Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying age of  26-35 heading into 2022, we expect the market to remain competitive.”

Finally Lawrence Yun, Chief Economist at NAR, recently offered this prediction: “With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”

What do these comments and predictions mean for homebuyers heading into 2022? Obviously, there’s some hope on the horizon. Prices are still rising, but interest rates are still low. Even if they go up to 4%, affordability is still going to be extremely high. With more inventory hitting the market, there will be more options for buyers, and there will be fewer multiple-offer scenarios to contend with.

If you’re thinking about selling, we’re still in a hot seller’s market. Prices won’t be rising at the same rate as they have the last few years, but they’re still going to go up. Demand is very high. If rates were to rise, you may see a slight drop off in buyers.

In the end, each real estate situation is different. If you have any questions about your situation or how market conditions may affect you, don’t hesitate to reach out via phone or email. I would be happy to help.