We all wish we had a crystal ball when it comes to how the year 2022 will go. This is especially true for the real estate market.
2020 and 2021 brought with them heavy seller's markets in the majority of places with housing prices skyrocketing and inventory going to an all time low.
Predictability
Let's face it - it's low. Globally, a lot is up in the air for 2022 and the real estate market is no different.
Redfin.com stated that "2022 will bring more balance to the housing market." in November of 2021. This is due to several different factors, one definitely being that the unpredictability and volatility of the current market can't continue forever.
Some of the easier factors to predict like interest rates and inventory lean towards a more balanced market.
What Does a Balanced Market Really Mean in 2022?
Let's put it this way: we don't mean a buyer's market. It'll likely be a few years before a buyers market emerges. But maybe the market won't favor seller's so highly.
One prediction that seems to be across the board is that the home prices will stabilize. 2022 should bring with it a stop to the skyrocketing of prices and hopefully lessen bidding wars.
If mortgage rates were to increase, even a little, and potentially stabilize - it can be also assumed that the frenzy of buying, selling, refinancing, etc. would slow down which could potentially lead to more inventory. This slower pace allows hesitant buyers to list their homes for top dollar without wondering if they'll be able to find another home to call their own. A more balanced market would definitely bring a sense of calm to both buyers and sellers that are feeling rushed and/or panicked by this "hot" market.
The demand for homes is one aspect that probably isn't going away anytime soon. For starters, many are relocating and therefore demand goes up in popular areas. Additionally, the generation of millennials and the likes that are entering the workforce and/or starting families isn't slowing down and these people need homes.
Will there be a more balanced market in 2022? Only time will tell!
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