Industry Economists Have Some Interesting Speculations for This Year’s Real Estate Market
As we start the new year many have been wondering what is in store for this year’s real estate market. The past year and a half or so has been less typical as we have been dealing with changes imposed by the pandemic alongside limited inventory and rising prices. Here are some speculation reports by some economist experts about the forecast.
Realtor.com’s Chief Economist, Danielle Hale, states “Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”
The National Association of Realtors Chief Economist, Lawrence Yun, comments on inventory stating “With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”
Deputy Chief Economist of First American, Odeta Kushi, offers a prediction on rates. “Consensus forecasts put rates at about 3.7% by the end of (the) year. So, that’s still historically low, but certainly higher than they are today.”
For sellers, it seems that this year will continue to remain a seller’s market with home prices increasing, but perhaps at more of a slower pace. Demand is expected to stay consistent so sellers will have an advantage in the marketplace. However, don’t procrastinate listing for too long as inventory may begin increasing which will help leverage buyer’s confidence.
For buyers, some hope could be on the horizon with increasing inventory levels. This would help ease the competition when searching for that perfect home. Home prices and interest rates may still inch their way up but with affordability in the buyer’s favor now it is wise to not put off a home purchase.
