![]() The industry could move closer to equilibrium slowing the rate of price escalation if there is an increase in housing starts, which are currently dangerously low. One thing yet to be determined is the long-term impact of the work-from-home trend. Pricier homes financed with higher mortgage rates will exacerbate affordability issues, and this can be expected to dampen demand from homebuyers on the margins of the housing market.Ĭarlo Siracusa, president of Weichert Residential Sales: The demand for real estate will remain strong nationally throughout 2022. Buyer demand will continue to be driven by higher wages, improving employment and rising stock market values. The lack of inventory will remain the biggest obstacle. At the same time, mortgage rates will tend to be firmer as the Fed ends its bond-buying programs and begins to lift interest rates by the middle of the year. ![]() The outsized annual increases in home prices seen in 2021 should slow in 2022, but even so will leave home prices at or near record highs. Keith Gumbinger, vice president of mortgage information website HSH.com : Home sales in 2022 should be solid overall, but high home prices will likely be joined by higher mortgage rates, tempering sales compared to this year. Home sellers will also likely make significant investments in climate-change resilient home features in order to appeal to climate-conscious home buyers. In 2022, we also predict home buyers will start considering climate change as a major factor in their home-buying decisions, as natural disasters and extreme weather events continue to increase in frequency. This low price growth will likely discourage speculators from entering the market, giving first-time home buyers a better chance at securing a home. We expect 30-year-fixed mortgage rates to slowly rise from around 3% to around 3.6 by the end of the year, mostly attributed to the pandemic subsiding and inflation continuing to linger.īy late fall, high mortgage rates, paired with already high housing prices, will likely slow annual price growth to roughly 3%. ![]() AFP via Getty Imagesĭaryl Fairweather, chief economist for Redfin : After two years of unprecedented uncertainty in the housing market, we’re expecting 2022 to be just as unpredictable. ![]() Extreme weather from climate change has home builders reconsidering how they design and power new. ![]()
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