What to expect in the 2022 housing market
Predicting the future isn’t easy but, here are some trends we are likely to see as we move into 2022:
Low Inventory: Supply chain issues and staffing shortages continue to halt builders as we enter year 3 of the pandemic, while actively listed homes fell to a record low at the end of 2021 and continues to drop as we enter 2022. Depending on the area demand could still be rising. Here in Arizona we are just now starting our busy season as snow birds shop for their winter homes. Conversely in colder states the buying season won’t wind up until the end of spring. However, with rising interest rates (see below) it may help weed out some buyers but the demand is still far surpassing the supply.
Rising interest rates: The federal reserve will raise interest rates a few times during the year and mortgage rates are expected to rise. However ending the year at an average of 3.6% on a 30-year fixed mortgage, rates are currently still remaining historically low.
Prices will continue to rise: While mortgage rates will rise, they are still very low and with more and more people working from home, demand continues to increase. Appreciation may not be as drastic as the previous year, but it’s not going to stop any time soon. Tucson currently sits in the top 10% in the country for appreciation, so if you’re ready to buy a house the sooner you start the better off you’re likely to be, prices only seem to be climbing. While the market isn’t *expected* to be as crazy as 2021 it is still expected to grow substantially as supply remains low and demand keeps growing.
If you’re ready to start the home buying process or cash in on your home let’s get in touch! Fill out the contact form or give me a call or text at 508-648-8059, I look forward to meeting you!
