Planning on a Move Next Year? Housing Predictions for 2022

Planning on a Move Next Year? Housing Predictions for 2022

To say the least, the real estate market in 2021 has been very interesting. But as the year comes to a close, the big question on everyone’s mind is what does 2022 have in store?  We do our very best to listen to the experts regarding the Housing Predictions for 2022.

As a Realtor in Gainesville FL, I have always followed  Brian Buffini  and Lawrence Yun, the chief economist for the National Association of Realtors.  Each year we tune into their joint presentation, Bold Predictions. It aired this week and we took very good notes and like to share their expert opinions.

Also, here is a  recent article from realtor.com outlined some of the economists’ housing predictions for 2022  with additional information on the real estate market:

• Home prices will stay high, but price growth will slow down. Home prices rose high and fast in 2021, with realtor.com economists predicting a 12 percent rise for 2021. And while the realtor.com team predicts that home prices will stay high, they also see that growth slowing down. So price growth projected at a much slower rate of 2.9 percent for 2022.
• Inventory challenges will continue. Low inventory proved a huge challenge for buyers in 2021. The norm has been fewer homes on the market means higher competition and higher prices—and it looks like it’s going to stay that way in 2022. The economists at realtor.com only expect the number of homes available to increase by 0.3 percent in the coming year.
• Mortgage rates will rise. Mortgage rates have been hovering near all-time lows throughout the year, creating even more demand for housing. But buyers hoping to score the lowest possible rate on their mortgage should act fast; the economists at realtor.com predict mortgage rates to hit 3.6 percent by the end of 2022. This is a significant increase from 2021’s low of 2.65 percent.  Mr. Yun expects the FED to deal with inflation issues and he predicts that by the 3rd Quarter of 2022, the lenders will raise mortgage interest rates to 3.7%
• Luxury Market will stay strong. High end buyers in the luxury market will continue to move their money from investment portfolios to real estate.  So there is no down turn expected for the high end luxury market.  It will remain strong through 2022.

LOCAL Real Estate Market

True real estate market stats are LOCAL.  Follow our monthly market reports!  We welcome the opportunity to be of service to you in the Gainesville Florida area & surrounding communities.  Please contact us if you would like to discuss YOUR options on moving in 2022.  The Bohn Team at RE/MAX Professionals welcomes the opportunity to be YOUR real estate professionals.