No doubt about it — the real estate market has been white hot in 2021. But if you didn’t make a move this year, and you’re thinking about buying or selling — or both — next year, you’ll want to know what to expect.
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As of Nov. 10, the 30-year fixed mortgage rate was 2.98%, which is actually the lowest it’s been since Sept. 23. If you’re planning to buy a house, you’re almost definitely pleased that rates aren’t exactly skyrocketing — but will it last?
Several real estate experts have weighed in on where they think the real estate market is headed in 2022. Here’s what they had to say.
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Big Cities Could Surge Again
Jonathan Spears, a real estate agent and founder of Spears Group, based in Santa Rosa Beach, Florida, said he believes market gains will continue across the U.S. in 2022. Specifically, as people continue to become more comfortable returning to big cities, he expects to see the largest surges in metropolitan markets in the Northeast, Southeast and the West Coast.
“Despite some market prognosticators forecasting increases in market values upwards of 15%, because the market experienced an increase of over 30% in the previous year, it may actually seem as though real estate markets have slowed,” he said. “Because of low inventory, we won’t see as high of rates of absorption simply because the inventory is not there.”
Despite that, he anticipates solid growth across the U.S. real estate market in general.
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The Rate at Which Home Values Are Appreciating Could Slow Down
Andrina Valdes, COO of Cornerstone Home Lending, Inc., pointed to statistics from a variety of housing authorities — including Fannie Mae, which predicts a 7.4% home appreciation for 2022, and the National Association of Realtors, which predicts 2.8% appreciation for existing homes and 4.4% appreciate for new homes — when explaining her prediction for home prices in 2022.
“While home values are not expected to depreciate, the rate at which home values are appreciating is expected to slow down,” she said.
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Mortgage Rates Could Rise — But It Could Still Be a Good Time for Buyers
Valdes said mortgage rates are projected to rise a bit next year, but still remain historically low, while buyer demand is expected to stay strong.
“The market is likely to cool compared to 2021, but it will still be active,” she said. “It may still be a seller’s market in many areas, but there’s likely to be more opportunities and wiggle room for homebuyers.”
Consequently, she said it will still be a great time to buy a home.
“A ‘priced out’ buyer should be able to find many more…
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