Prices have risen rapidly as demand for homes outpaced supply, leading to a housing market in which home buyers must compete for limited inventory. However, according to recent reports, this trend may be slowing down in 2022.
A recent survey conducted by Zillow and Redfin revealed that more than 40% of real estate agents anticipate that home price growth will moderate in 2022. This is good news for prospective home buyers who may have felt overwhelmed by the current market conditions. The same survey also suggests that inventory levels may begin to rise, providing potential home buyers with more options and making the buying process less competitive.
In addition to the survey results, a new report from CoreLogic predicts that home prices nationwide will slow down in 2022. According to the report, national home price growth is expected to slow from 5.8% in 2021 to 4.8% in 2022. The report also projected that home sales could reach pre-pandemic numbers as early as 2022, and that mortgage lending standards could ease slightly in the same year.
Despite these encouraging signs, there are still economic and political uncertainties that could influence the housing market in the coming years. Inflation could drive up housing prices, while interest rates could play a role in determining how much buyers can borrow. Meanwhile, federal and state regulations could impact how ready lenders are to provide financing.
Overall, the outlook for 2022 is more positive than it was a year ago. However, prospective homebuyers should remember that there is never a guarantee in any market. By doing research into their local market and being well informed about the various factors that could potentially affect the housing market, buyers can make sure they are prepared to take advantage of any opportunities that arise.
This article was contributed on Nov 29, 2023