Thursday, January 6, 2022 / by Margie Wright
So what are we predicting to happen in 2022?
We're seeing, first, a continual rise in home sales as we go into the new year. We will also see a gradual uptick in mortgage rates, making affordability a major concern and one of the first things that home buyers will be looking at. Rental prices are also expected to continue rising which will keep the housing market competitive.
Furthering the competition is an influx of first-time home buyers that are in the prime ages of buying. Those that are 26 to 35 are expected to be looking in high volumes. With the flexibility of working from home, meaning less of a demand for homes in close proximity to the work place, there will be popularity for homes in more rural areas. This may ease the housing issue in the hearts of big cities, but it could strain the housing inventory in other areas that have thus far been less populated. It will also mean that there's an increase in price in these areas, but they will still remain cheaper per square foot than other areas.
Later in the year, with the combined impacts of higher mortgage rates and higher prices, we are likely going to see less homes being sold. While still a competitive market, this could open up more opportunities for first-time home buyers to secure a deal. With these higher prices and rates, though, the luxury market is predicted to stay relatively stable. Though prices across the board should remain stable in the later part of 2022, this will likely not impact the high demand any. There will still be high demand as the work on regaining the inventory continues to grow.
Home construction continues on at a steady pace, impacted by the supply shortages and other issues with home construction materials. As of right now, there isn't much hold out that this will change over the course of the year. Unless something changes in the supply chain, construction will continue as it has been, working with materials are already available.
Overall, homes are becoming a place of more value. More people are wanting to become homeowners to fit their dreams and their needs. These range across the board with what people are needing out of a home, but as more people have stayed home, more work has been done to make homes a place that people truly enjoy being in.