Our economy is currently going through a high inflationary trend and rising mortgage interest rates. While at the same time, we have been experiencing a housing shortage supply, which resulted in extraordinary 2021 housing prices appreciation. But it seems that although 2022 will still bring modest buyer demand, experts are cautioning that we may be at the peak of the real estate market:
The National Association of Realtors (NAR) just released their latest Existing Home Sales Report which reveals that sales are up in January. Existing home sales rose to a seasonally adjusted annual rate of 6.5 million – an increase of 6.7% from the prior month, with sales up in all regions.
Zillow economists predict a slight slowing of the super-charged market in 2022, but with inventory remaining tight, it’s still a sellers’ market.
Corelogic’s chief economist Frank Nothaf predicts that “with less demand, we expect homes listed for sale will be on the market a bit longer with fewer competing bidders, which should moderate price growth. The CoreLogic Home Price Index Forecast has the annual average rise in the national index slowing from 15% in 2021 to 6% in 2022.”
The California Association of Realtors predicts that supply constraints and higher home prices will bring California home sales down slightly in 2022, but transactions will still post their second highest level in the past five years.
If you’re on the fence about selling, you have a few choices: You can put your house up for sale soon to take advantage of the current demand or you can wait to see how interest rates and inflation play out as they relate to housing (though it could result in a missed opportunity).
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