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Mortgage rates, home prices expected to stabilize, forecast says

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Soaring Mortgage rates When inflation With the housing market since the beginning of 2022 Stock market.. Fear of recession and general economic uncertainty mean that economists are adapting their forecasts for the year to take these changes into account.

There are some changes expected in the housing market next year, but not all changes are negative. For buyers who are dissatisfied with the shortage of homes for sale and the overwhelming competition for homes, some relief may be on the way. In addition, although mortgage interest rates and housing prices are not expected to decline, they are expected to be somewhat stable. It may also bring some relief to buyers who are struggling to stay ahead of price hikes and rate hikes.

Realtor.com Has been updated this is 2022 housing market forecast He discovered that as demand cools and supply increases, calmer waters may come first. The new forecast expects the following:

・ Mortgage rates will average 5% in 2022 and will rise to 5.5% by the end of the year. This is compared to the initial forecast of an average increase of 3.3% and a maximum increase of 3.6%.

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· Buyer demand is expected to cool during the summer, but most markets remain in favor of sellers.

This year’s list is expected to increase by 15% compared to 2021. Initially, inventories of homes for sale increased by only 0.3% year-on-year.

The median home price is expected to rise 6.6% in 2022 compared to last year. This is well below the double-digit increase this year, but well above the initial forecast of 2.9%.

・ Home sales in 2022 are expected to be close to the record, lagging behind the sales volume in 2021. Still, the new forecast is for 2022 sales to decline by 6.7%. Initial Realtor.com forecasts were for sales to increase by 6.6%. 2021.

-As for the start of construction of single-family homes, the forecasts for when new home construction will begin are the same, up 5% in 2022 compared to 2021.

According to a survey, homebuyers are looking for out-of-state homes.

As mortgage rates rise and home prices continue to rise, some buyers will be kicked out of the market, but they will have more monthly housing budgets, more down payments, and lower-priced homes. Those who can find it will be able to find room in the next 6 months. ..

With wage growth Low unemployment rate Danielle Hale, Chief Economist at Realtor.com, finds it easier for people to find more flexible opportunities to move or work away from the more affordable housing market due to competition for employees. It suggests that it may be. In the first quarter of 2022, 40.5% of shoppers looked for out-of-state real estate, according to Realtor.com data. This is an increase from 33.4% in the first quarter of 2021.

For a complete report, please visit: realtor.com/research/2022-national-housing-forecast-midyear-update..

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