The housing market saw a major rise in the last year and a half, leaving many people with the question: “Will the housing market boom or bust in 2022?” Fear not, because we are here to answer all your real estate questions and concerns.
In this article, we cover five real estate predictions for 2022 and whether or not now is a good time to buy. Our goal is to help you to become a more informed consumer before buying real estate. Keep reading to learn more.
Prediction 1: Mortgage Rates Rise
Typically, when financial markets expect Federal Reserve to take action to control inflation, mortgage rates rise. The Fed has already taken action by buying mortgages wholesale and lowering mortgage rates. Because these new actions taken by the Fed directly impact mortgage rates, we predict mortgage rates will rise in 2022.
Prediction 2: A Shift Away From Urban Living
During the COVID-19 pandemic, a majority of businesses moved to work from home. Many expected this shift to remote work to be temporary, but due to the cost-effectiveness of remote working, it seems like it’s here to stay.
New remote workers are giving up their apartments in the big cities in favor of spacious housing in small, rural towns. New York City and Los Angeles are no longer the hottest places to live, the suburbs are where it’s at.
Prediction 3: Property Prices Remain High
Housing prices are expected to remain high and even rise because of an increase in supply and demand. Most millennials are at the age where people get married on average, so there are plenty of new families around looking for homes.
Prediction 4: Home Inventory Increases
With such an increase in demand, home inventory has dwindled throughout the country. But, a new influx of home inventory will cause high property prices to stay high but stabilize.
Prediction 5: More Western Migrants
Western states like Arizona, Idaho, and Colorado have seen a large influx of migrants as more and more people give up city living in favor of the suburbs. These states have seen the biggest rise in housing prices as people continue to most west.
The housing market is and will remain competitive, which is why it’s in your best interest to work with a realtor to get your offers noticed. The Bartic Group is a full-service real estate consulting company based out of Denver, Colorado. Their team of Colorado realtors helps buyers, sellers, and investors alike in all areas of real estate.
What Are Your Real Estate Predictions?
Whether you are buying or selling real estate, we want to hear from you! Comment below your own real estate predictions for 2022; any you feel we missed, and any you were surprised to see on our list.
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