Experts see the sellers’ market continuing into 2022 but as a less wild sellers’ market than during 2021.

Inventory to Remain Scarce

Goldman Sachs is predicting that housing inventory will remain low for a “long time.”  Here is the reasoning behind “for a long time:”

  1.  Years of under-building
  2. Demand spikes due to ongoing and more permanent remote working policies
  3. Comparatively low mortgage rates even though the Federal Reserve will gradually raise interest rates
  4. Demographics of Millennials both buying and “moving up” and Gen-Zers aging into homeownership.

Though there will likely be more listings in the spring and summer than the record-low level of inventory at the end of November 2021, Zillow research indicates it unlikely that there will be enough houses to meet demand.  According to Zillow’s 2022 housing outlook, “The (inventory) gap shrunk in 2021 and will likely shrink again in 2022, but the housing shortage will be a defining feature of the market once again…”

An important question for you.  2022 is here…have you completed your 2022 Real Estate Business and Lead Generation Plan? If not, no worries. We have done the hard work for you. Download your 2022 REAL ESTATE TREASURE MAP! Text HARRIS to 47372. It’s that simple and takes 3 seconds. Text HARRIS to 47372 and when you do we will instantly text you back with a link to download. BONUS: For a limited time when you text HARRIS to 47372 you will also receive a Coaching Call!

4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt

Interest Rates to Rise

Diane Olich with CNBC said that rising interest rates are to take “center stage of the housing market” in 2022.

Both Redfin and Realtor.com predict a 30-year fixed mortgage rate will hit 3.60% by the end of 2022.  This prediction of 3.60% compares to the current average of 3.30%.

Skylar Olsen, principal economist with the home-buying app Tomo, said that the “silver lining” of higher mortgage rates is that there may be fewer speculative buyers in the housing market.  Olsen said, “When you have higher interest rates, it (the housing market) becomes more of the people who buy homes just to live in them.  That’s something the market will benefit from, coming back down to sanity.”

CNBC’s Olich’s big question for the 2022 housing market is whether or not investors will remain in the market as rising interest rates dampen their return on investment.  If investors are lured into higher returns elsewhere, perhaps the ’22 housing market will become less wild and more sane than in 2021.

Prices to Continue to Rise

Sellers are predicted to continue wielding the upper hand in the housing market in 2022 due to the continuing trifecta of low inventories, high demand and comparatively low interest rates.

Most prognosticators forecast prices coming back to earth in 2022 but not ground level earth.  On the low end, CoreLogic predicts prices to rise +3%.  Zillow, on the high end, predicts home prices to rise +14%.    Fannie and Freddie are taking the middle ground byforecasting home prices to rise between 7% – 8%.

Are you ready to learn what your DISC personality style is? You know it’s critical that you understand what your natural personality style is. Once you have obtained this knowledge everything in your business and personal life will change for the better. Tim and Julie Harris are making it super simple for you to have this powerful info. Now, text the word YOU to 47372, and when you do you will instantly receive a special exclusive text link. Next, you will complete your own DISC personality test.. the results will be shared with you instantly once you complete the simple and fun test, no strings attached. Simply text the word YOU to 47372 and click the link.

P.S. (Limited time: no charge to take the complete test)

* 4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt

First-Time Buyers to Continue Being at Affordability Disadvantage

Because houses are so much more expensive now than when older generations were first buying homes and because Boomers are remaining in their homes longer as they live longer, first-time buyers, mostly Millennials and Gen-Zers, continue to be at a disadvantage when it comes to buying a house.

Olsen said that due to affordability and tight supply issues, more and more first-time buyers will likely need financial help from their family and friends to make a down payment on a house.  Obviously, if first-time buyers don’t have family members or friends who can help them financially, they will likely be side-lined from the housing market…unless they can find a down payment assistance program in their state/region.

Thanks to CNBC.

 

 

Claim Your FREE Real Estate Treasure Map!