Here are some interesting reports on what to expect for this year’s real estate market
Cervone Deegan + Associates knows that as we embark on the new year many have been wondering what this year’s real estate market will bring. The past year or two has been less typical as we have been addressing adjustments imposed by the pandemic along with slim inventory and rising prices. Here is some speculation by some economist experts about the forecast.
Realtor.com’s Chief Economist, Danielle Hale, states “Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”
The National Association of REALTORS® Chief Economist, Lawrence Yun, comments on inventory stating “With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”
Deputy Chief Economist of First American, Odeta Kushi, offers a prediction on rates. “Consensus forecasts put rates at about 3.7% by the end of (the) year. So, that’s still historically low, but certainly higher than they are today.”
The Market For Sellers
For sellers, it looks like this year will continue to remain a seller’s market with home prices still increasing but maybe at a more moderate pace. Demand will probably remain consistent so seller’s will have an advantage in the marketplace. However, it is not recommended to put off listing for too long as inventory may start increasing which will help leverage buyer’s confidence.
The Market For Buyers
For buyers this year some hope could be in the future for increasing inventory levels. This would assist in cooling off the competition when looking for that perfect new home. Housing prices and interest rates may still slowly increase but with affordability in buyer’s favor now it is a good idea to not put off a home purchase.