Housing Forecast for the Rest of the Year
The housing market is at a turning point. Let’s turn to the experts for projections on what the second half of the year holds for residential real estate.
Where Mortgage Rates Will Go Depends on Inflation
This year, rates have climbed over 2% due to the Federal Reserve’s response to rising inflation. If inflation continues to rise, it’s likely that mortgage rates will respond.
The Supply of Homes for are Projected to Continue Increasing
Because more homeowners are listing their houses, and the increase in mortgage rates, the experts say the increase in home supply will continue.
In the updated inventory forecast from realtor.com, their projections for housing inventory gained dramatically, going from a 0.3% increase at the beginning of the year to a 15.0% jump by the end of 2022.
Home Price Forecasts Call for Ongoing Appreciation
The low inventory homes for sale and high buyer demand lead to record-breaking increases in home prices during the pandemic. Today housing supply is increasing, but there are still more buyers than homes.
That’s why experts are not calling for prices to decline, rather they’re forecasting they’ll continue to climb, just at a more moderate pace this year. On average, homes are projected to appreciate by about 8.5% in 2022.
For current homeowners looking to sell, know your home’s value isn’t projected to fall, but waiting to make your purchase does mean your next home could cost more as home prices continue to appreciate.
So, if you’re thinking about buying your first home or you’re ready to make a move, it may make sense to do so now before prices climb higher. But rest assured, once you buy a home, that price appreciation will help grow the value of your investment.
Bottom Line
Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. If you want to discuss your goals or what lies ahead, feel free to reach out, so we can determine the best plan for your move.