What Will Impact the Housing Market in 2022?

A diverse number of factors contribute to the state of the housing market. Economic changes over the last two years have seen rapid changes in the market, but these trends are likely to settle in 2022. Here are some trends and impacts to look out for this year:

Rising mortgage rates. Since plunging in 2020, mortgage rates are likely to rise over the next year. Because of a combination of rising inflation and consumer spending, sellers and buyers can expect an increase in mortgage rates, though it’s unclear how this may affect buying patterns because historic evidence suggests that many buyers are still willing to purchase homes in times of increased mortgage rates.

Falling price appreciation. The slow decline in price appreciation can benefit owners and buyers in several ways. First, owners may not have to worry so intensely about the value of their homes outpacing their pay, while buyers are less likely to become trapped in bidding wars for property, which may mean more stability when planning to purchase a home.

Continuing seller’s market. Although the outlook suggests a positive improvement for prospective buyers, the market is likely to remain in the seller’s favor through 2022. If you’re looking to buy a home in 2022, continue to do your research and consider strategies like viewing homes that have been on the market for longer than 21 days since these homes may have reduced prices.

Sources: Bankrate.com, Washingtonpost.com, Gettyimages.com