What to expect in 2022

Posted by Jane Ebury on Wednesday, January 12th, 2022 at 10:14am.

The real estate market in 2021 has been like nothing we have seen before. What does 2022 has in store for us? 

Expect slower housing price appreciation, easing inflation and rising interest rates in 2022 - according to NAR (National Association of Realtors). 

"Overall, survey participants believe we'll see the housing market and broader economy normalize next year," Yun said. "Though forecasted to rise 4%, inflation will decelerate after hefty gains in 2021, while home price increases are also expected to ease with an annual appreciation of less than 6%. Slowing price growth will partly be the consequence of interest rate hikes by the Federal Reserve."

The NAR expects 30-year fixed mortgage rates to end 2022 at 3.7%, up from a recent 3.2%, while a consensus estimate collected by NAR forecasts a 5.7% rise in home prices in 2022. The sales price of the median existing home was $353,900 in November. A $300,000 30-year fixed rate mortgage at 3.7% would cost about $1,381/month, about $84 more per month ($1,297/month) than at 3.2%.  A $1 million mortgage at the higher rate will cost about $278 more per month.....that sounds manageable when many are experiencing rising wages and asset valuations.

If you are thinking of buying or selling a home in 2022, let's have a conversation.

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