The new year has begun and after a complicated 2021, many are left to wonder what the housing market will look like throughout 2022. Many factors come into consideration when trying to understand
Looking to buy a house in 2022? Here’s what the experts are saying
Dated: January 4 2022
The new year has begun and after a complicated 2021, many are left to wonder what the housing market will look like throughout 2022. Many factors come into consideration when trying to understand the Florida housing market, and according to specialists, here is what you can expect in the upcoming year.
- Mortgage rates will increase
2021 will be remembered for its historically low mortgage rates, which had an impact on house sales, as explained before in this article. Predictions for 2022 on the other hand indicate an increase to up to 3.5% rate for 30-year fixed mortgages. Rates might fluctuate from 3.3% to 3.6% by the end of the year, according to Realtor.com. 1
- Housing prices will increase slowly
2021 had an increase of nearly 20% in housing prices. Although it is expected to increase throughout this year, experts predict it will be at a much slower pace. The National Association of Realtors (NAR) estimates housing prices will climb 5.7% in 2022.
Danielle Hale, Realtor.com chief economist, shared her insights and added that home sales are expected to increase by 6.6%, while home prices might rise another 2.9% on top of the 2021 highs. The uptick in mortgage rates will make affordability a priority for home buyers, especially between Millenials who are starting families and don’t want to keep up with the increase in rental units. 2
- People keep moving to Florida
According to the 2020 U.S. Census Bureau, since 2010 over 2.7 million people have moved to Florida. Sunny weather, beautiful beaches and the lack of state tax are the main attractives for people moving south. This is a great opportunity for investors to explore ways of increasing their property portfolio.
Demands for rental houses, AirBnb and such are increasing also due to the fact that international travels to the country are available again. In markets such as Miami-Dade, over 70% of the population rents, making this a great long-term investment opportunity. 3 4
- Supply still can’t keep up with demand
The NAR estimates that the U.S. has under-built housing by at least 5.5 million units and according to Danielle Hale, it is estimated that we are 5 million units short. “With homes selling and continuing to do so quickly, inventory will remain limited, but we expect to see the market rebound from 2021 lows. Inventory is expected to grow 0.3% on average in 2022”.
Although it is hard to predict every detail about the housing market in 2022, having an idea of what to expect can help you plan ahead. At Agent Plus Realty you can plan your next step with one of our qualified agents. Give us a call now and start you 2022 in the best way possible!
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1 https://www.realtor.com/news/trends/leading-economists-and-analysts-on-the-4-things-to-look-for-in-the-2 022-housing-market/
2 https://www.forbes.com/sites/brendarichardson/2021/12/13/experts-predict-what-the-housing-market-will-l ook-like-in-2022/?sh=d5ba16539429