Housing Market Predictions for 2022
October 26, 2021
Whether or not you’ve been actively house hunting, you’ve probably heard some murmurings about the housing market trends this year. 2021 has been marked by low inventory, high demand, remarkably low interest rates, and some ruthless competition. The year isn’t over yet, and while the market has simmered down ever so slightly, these housing market predictions are important to keep in mind if you’re thinking about entering the fray in the coming months.
WHAT DOES THE HOUSING MARKET FORECAST LOOK LIKE THROUGH THE END OF 2021?
Inventory, or houses available for sale on the market, is expected to creep up as this year winds down. But probably not quickly enough to meet the demand of buyers. The housing market outlook, while perhaps not as fiery hot as it was at the start of the year, is expected to remain competitive through the end of 2021. That could mean that you’re still trying to elbow other prospective home buyers out of the way, and perhaps, losing out on offer after offer. If you have your sights set on purchasing a resale home before the year strikes 2022, you’ll likely need to be prepared to make a strong offer. If your lease is up or your timeline demands the quick turnaround of resale but you can’t stomach the competitive housing market outlook — new construction could still fit the bill. We offer Quick Move-In Homes for this exact situation, all the perks of new construction without having to wait for the from-the-ground-up building process.
UNDERSTANDING THE HOUSING MARKET PREDICTIONS FOR 2022
It’s important to remember that housing market predictions are just that, predictions. That being said, a whopping 69% of the real estate experts polled expect the same thing from the upcoming housing market. 2022 is expected to surpass this year in terms of inventory available early in the year. Another promising component of the housing market forecast for 2022 is that home value appreciation should balance out somewhat. This hopefully means that housing prices won’t continue to skyrocket, which could do wonders for your skyrocketing blood pressure too.
Real estate experts are also keeping an eye on new construction homes entering the housing market — 2022 is expected to see a notable increase in new home developments. For a frame of reference, in 2020, there were 1.38 million housing starts and housing market predictions for 2022 anticipate around 1.68 million. We can verify this piece of the housing market forecast on a local scale. Here at StyleCraft Homes, we’re preparing several new communities for 2022. We’re striving to help meet the demand we’ve been seeing in housing market trends and provide buyers with more new homes in the areas they’re most interested in living.
WHAT DO THESE HOUSING MARKET PREDICTIONS MEAN FOR NEW CONSTRUCTION?
We’ve all had over a year of battling the unexpected. In the new construction industry specifically, we faced supply challenges, delays, labor shortages and more which required ingenuity and patience from all involved. As StyleCraft moves forward into 2022, we’re able to use our experience with COVID-19 to be straightforward with our prospective buyers so that they know what to expect from the home building process. With the year that the resale housing market has had, the sense of security that comes with new construction is appealing to more purchasers. As such, the new construction industry as a whole is working to keep up. More new construction starts can help offset the low inventory issues that plagued 2021 and give home buyers more options in 2022.
THE HOUSING MARKET FORECAST FEATURING: BIDDING WARS
The housing market trends in 2021 showed unprecedented risk-taking in the resale home market. Many buyers gambled by waiving inspections and contingencies in order to close the deal. And while housing market predictions anticipate that this should settle down somewhat in 2022, multiple offers and bidding wars aren’t an entirely new phenomenon in the world of resale. Especially for those eye-catching, just-gotta-have-it homes. So if after this year, you’re ready for a bit of certainty during your homebuying experience, new construction could be a better bet. For one, when you work with StyleCraft Homes you won’t be subject to the blood-pumping panic of being pitted against another buyer, or worse, twenty other buyers. There aren’t bidding wars for space in our communities. When you pick a lot and complete our paperwork in a timely fashion, it’s yours.
KEEP YOUR EYE ON THE HOUSING MARKET: 2022 CAN BE THE YEAR OF HOMEOWNERSHIP
Despite all of the most expert housing market predictions, 2022 could still be a year that throws us curve balls. We can’t bank on current interest rates or housing prices. Before you make any plans based on housing market predictions, talking with one of our Preferred Lenders can help you determine your purchasing power. They can help you understand all of the costs that go into the initial home purchase so that you can start (or continue) to save for a down payment and closing costs. A lender might also point out opportunities to improve your credit score, which can be especially helpful as you head into the holiday season. Because let’s be honest, you’ll likely be giving that credit card a bit of a workout.
Sometimes the housing market feels like it has a mind of its own. But by understanding the basics of supply and demand, keeping an eye on homes for sale in your area (and how quickly they sell!), and leaning on knowledge from the experts — we can balance housing market trends and predictions with our own plans and goals. If you want to avoid the housing market mayhem, countless open houses, yet another “thanks but we went with another offer” call from your realtor, you’re not alone. New construction with StyleCraft Homes could be the ticket to Living Up, without all the stress, in 2022.