5 Housing Market Predictions

Last year’s perfect storm of supply constraints, low interest rates, and record-high demand led to a sharp increase in home prices. The median U.S. home price hit an all-time high of $404,700.

If you’re looking for some relief in the crowded and competitive housing market prices in 2022, there might be hope in sight.

Whether you’re contemplating buying your first home, or are a real estate veteran, here are five home price trends to watch in 2022.

1. Mortgage rates will continue to rise

After hitting an all-time low of 2.65% in January of 2021, mortgage rates have been on the rise.

Redfin’s chief economist predicts mortgage rates to rise by 1% or more by the end of 2022. While rising rates can be scary, keep in mind that rates are still at historically low levels.

2. Buyer demand and competition will decline

2021 saw an unprecedented surge in home buyer demand.

But Fairweather sees a shift toward a less frothy market. “2022 will bring more balance to the housing market,” she says.

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