Hopeful Predictions for the Housing Market In 2022

Mindful of the old saying that the only things you can predict are death and taxes, we’re going to try chance our luck and predict what will happen with the housing market in 2022.

With inflation and interest rates rising and conflict in Ukraine, there is a lot of uncertainty around, so take this post lightly and don’t bet the farm on anything we’re suggesting!

We don’t believe the housing market activity will reach the historic highs of 2021, but economists expect it to remain buoyant.

In 2022, we anticipate that the strong seller’s market will continue, the Sun Belt will remain the most sought-after region, and flexible work options will continue influencing home purchase decision-making.

So keeping that in mind, let us get going with the top 8 predictions, shall we?

#1: Low-Interest Rate Environment Will Not Endure

A low-interest-rate environment makes housing more affordable, pushing home prices higher as more buyers compete for the same limited supply.

Real estate investors also benefit from low-interest rates; more investors purchase houses intending to rent, reducing the available housing stock. The two buyers types, homeowners and investors, compete over ever reducing housing stocks, pushing up prices.

#2: More Renters

The number of renters increased even before the pandemic. Due to the large number of millennials reaching adulthood, there was record household growth. The Great Recession left 72 million young people with less disposable income and purchasing power than previous generations.



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Furthermore, the baby boomer generation was a top-growing group of renters during the 2010s. People are selling their houses in retirement to live off rent and equity instead, and it is possible they cannot recover from the Great Recession and forcing them to rent.

#3: The Price of Homes Will Continue To Be Strong

Even though we’re in a recession, most markets are seeing high home prices. Why? It’s all about supply and demand. People are moving out of cities, apartments, and condos due to COVID. Short-term rentals and rising building costs are contributing to low supply.

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