4/7/22, 10:32 AM
Real Estate Trends For 2022 | Tal Rappleyea - Real Estate Law
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Real Estate Trends For 2022 by Tal Rappleyea | Apr 7, 2022 | Real Estate
A combination of factors such as low-interest rates and record-high demand pushed up home prices last year. A few key trends are expected to help homeowners make an informed decision when it comes to buying or selling their homes this year. Despite the uptick in home prices, Lawrence Yun, the chief economist of the National Association of Realtors, said that the intense bidding wars will start to ease in 2022. This year, however, home prices are expected to continue to rise. Read on for a few key trends you can expect to see in the real estate market in 2022.
More New Home Construction Due to the lack of building materials and skilled labor, home-builders were not able to meet the rising demand for new homes in 2021. Mike Fratantoni, an economist with the Mortgage Bankers Association, said that the situation should improve in 2022. talrappleyea.net/real-estate-trends-for-2022/
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4/7/22, 10:32 AM
Real Estate Trends For 2022 | Tal Rappleyea - Real Estate Law
He noted that the increase in new-construction homes should eventually lead to a slowdown in the price growth. This is good news for would-be homebuyers, as it eliminates the uncertainty caused by the high prices and low supply.
Mortgage Rates Will Keep Rising After reaching an all-time low in January of 2021, mortgage rates started to rise. At the end of the year, the average 30-year fixed-rate mortgage was 3.05%. Most economists expect mortgage rates to increase slightly in 2022. Daryl Fairweather, the chief economist of Redfin, predicts that the average rate will reach 3.6% by the end of the year. While it can be unsettling, it’s important to note that mortgage rates are still historically low.
Investors Will Continue Investing According to Danielle Hale, the chief economist of realtor.com, real estate investors were still net buyers in the housing market in 2021. She noted that the strong demand and rising rental prices will continue to boost the market in 2022. The end of the pandemic has lifted many of the restrictions that prevented people from leaving their homes. This should allow the rental market to return to more typical supplyand-demand economics in 2022.
Competition Should Decline Due to the lack of inventory and the constraints in the supply chain, the housing market overheated in 2021. However, Fairweather predicts that the situation will change in 2022. She said that the market will start to resemble a more balanced one. Fairweather noted that low price growth will encourage more first-time homebuyers to enter the market. This could be a welcome change for people who were previously discouraged by the high prices.
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4/7/22, 10:32 AM
Real Estate Trends For 2022 | Tal Rappleyea - Real Estate Law
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