What to Expect in the 2022 Housing Market

In 2020 and 2021, the housing market experienced an unprecedented shift into a seller’s market. With a housing shortage and historically low mortgage rates, the expectations for homebuyers changed astronomically. 

As the year 2022 begins, we can take a look at the predictions experts have made for the housing market this year. According to Danielle Hale, chief economist expert for Realtor.com, we can expect another year of a seller’s market. There are a few reasons for that line of thinking, including:

•  Home Sales: These sales are expected to increase by 6.6% this year. The affordability of homes in the past two years has been challenging for many buyers, including first-time homebuyers. This affordability issue will continue into 2022.
• Demand: Now, more than ever, millennials are becoming homeowners. The demand from the millennial demographic (age 26-35) is large and keeps the market competitive. While there has been an increase in inventory, it is still not enough to keep up with the growing demand.
• Interest Rates: There has been an uphill tick in interest rates for mortgages, but it is steady and slow. These low interest rates are enough to keep the demand for homes steady!