Real Estate Predictions for 2022
Prediction and speculation have always been factors in reference to any investment but it is a norm in real estate; however, speculating and making predictions for 2022 is extra speculative due to the state that the 2020 Pandemic put the real estate market in as interest rates have been at an all time low with the number of home buyers and refinancing numbers at an all time high. So, it is no wonder that many are interested in what 2022 will bring. Let’s take a look at some of the talk out there as many are curious and even Alexander Djerassi believes this is important information.
1. It is starting off as a more negative outlook in summary as some are saying there will be higher interest rates and the home prices will be higher too. This only plays into the speculation that there will be less demand and desire to buy from potential home buyers. As previously mentioned, the 2020 Pandemic had record low mortgage interest rates and a big desire to own a home from potential homeowners but 2022 will be the opposite. So, less demand and less desire is one prediction.
2. This has been stated over and over but this prediction must stand on its own as it is based on trends and research and that is, again, interest rates will rise in 2022. Yes, mortgage interest rate will be higher per a forecast recently done by the Mortgage Bankers Associations. There was an astounding and unbelievable 2.65% low at the beginning of 2021 but researchers at Freddie Mac noted that the rates began to inch up, hovering and staying around 3 percent for a moment but will begin to rise as predicted.
3. Again this has been touched on, the fact that the price of a house will continue to rise as it was noted and found that even during the 2020 Pandemic year the price of houses were actually steadily rising although they were in demand because of the lower interest rates. House values trend upward in spite of the Pandemic.
4. Another prediction is that inventory will continue to be a challenge because of housing supply shortages which impacts the number of houses for sale. This prediction coupled with the speculation that more and more housing markets will begin to favor and stress renting over buying. This is in reference to monthly costs and it will truly have an adverse effect on the real estate market.
In conclusion, all predictions and speculations lean towards sellers having an upper hand in the real estate market. Which could make one wonder if the market is in favor of sellers, who will be there to buy? However, it’s important to take a look at current trends and conditions of the market to give an educated guess as Alexander Djerassi would agree that the trends and conditions of the real estate market are important factors and should be reviewed carefully. So, for 2022 let’s see what happens and if the predictions were right or close.