Have you been wondering what the future of real estate looks like for 2022?
Everyone from people looking for house flipping loans to the homebuilding industry have been trying to figure out what this year is going to look like. These predictions are based on the latest information as well as the trends that have been established for the last few years.
Here’s what real estate is going to look like in 2022.
What Happened in 2021?
2021 saw historic increase in prices. The average home price went up 20% in 2021 which is a historically unprecedented gain. Home buying was also much more active in this year with more homes being purchased than in the previous years.
This created a lot of uncertainty in the market because some investors weren’t certain that these trends could hold on.
The 2022 Real Estate Predictions
Here are some of the most important real estate predictions for 2020 coming straight from industry experts.
We can expect that mortgage rates are going to go up.
Mortgage rates took a huge dive at the start of the pandemic, but in 2021 mortgage rates increased. We’re going to see mortgage rates increase again to be even higher than they were in 2021.
It’s worth keeping in mind that most experts agree that mortgage rates still won’t hit their pre-pandemic highs.
More Sellers, More Buyers
2021 saw some of the highest volume for sales. There were more homes on the market and more buyers for those homes than ever before. It looks like 2022 is going to continue this trend with an increasingly active market.
This could make home buying opportunities type. With more buyers on the market, there is going to be more competition for homes and a tougher buying market.
Supply Chain Worries
The global supply chain crisis is still ongoing. However, it’s not certain how this is going to impact the real estate industry. Home building industry leaders are still confident that they’re going to be able to get the materials and supplies they need to build new homes, flip existing homes, and repair old ones.
Rising Prices Continues
The price of real estate is still going up. Most experts agree that the cost of real estate is only going to go up further in 2022.
Will 2022 Be as Wild of a Ride as 2021?
It’s hard to say with any certainty this really in 2022 if it’s going to be as wild of a ride as 2021. Some real estate experts suggest that these trends are going to continue in 2022 is going to be even wilder than 2021. However, it looks like we’re just going to have to wait a little bit and find out for ourselves.