As we move into 2022, both buyers and sellers are wondering, what’s next? The housing market has been breaking new records across multiple fronts throughout 2021, leaving home shoppers wondering if they should buy now or wait in the hope that more homes become available, and at more affordable prices in 2022. According to the leaders in the industry, below is a recap of the 2022 housing market predictions:
The National Association of REALTORS® forecast the average mortgage interest rate to hit near 2.7%. This is good news for prospective home buyers worried about housing prices and rising rates. While mortgage rates are unlikely to change drastically or quickly, it’s always good to keep an eye out and plan strategically.
While prices likely won’t fall this year, they won’t continue to skyrocket as they did in 2020 and 2021. The median home sales price is predicted to rise 2.9% in 2022, according to Realtor.com. Home price growth means that home buyers will need to make sure they can afford the homes they plan to buy. Prospective homebuyers may want to use mortgage calculators to determine home price affordability in advance and also potentially save more for a down payment.
What will happen to home values in 2022? Bidding wars changed home values in 2021 because real estate-hungry buyers were willing to pay more for homes than homeowners’ asking price. According to data from at Rocket Homes, home values were up 10.74% from January 2020 to the same time in 2021. From January to November this year, prices are up 17.48%. Similarly, home values should continue to rise in 2022.
What does this mean for Buyers?
Hope is on the horizon for buyers in 2022 as you should see your options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease. Just remember, rising rates and prices are a great motivator for you to find the home of your dreams sooner rather than later so you can buy while today’s affordability is still in your favor. In this ever-changing market, be prepared to act quickly and react to sudden changes in the housing market.
What does this mean for Sellers?
This sellers’ market will remain in 2022 as home prices are projected to continue climbing, just at a more moderate pace. Selling your house while buyer demand is so high will truly put you in the driver’s seat. With more listings projected to become available, your ideal window of opportunity to stand out from the crowd won’t last forever. It is important to work with an agent who knows your local market and current inventory conditions to ensure you have the support you need to make an educated and informed decision about selling in the coming year.
What does this mean for Baldwin County?
According to the BLS, Baldwin County was ranked number three for job growth among all US Metro areas. Baldwin County saw a 10.3% increase in total jobs, adding approximately 7,800 jobs over the past year. Because of this, Baldwin County will also expect a growing number of homeowners to bring properties to market. Being such a sought-after destination, this will take some pressure off high prices and offer buyers more options. There is no doubt, the strong demand to live within the demographic of the Gulf Coast, will continue to act as the wind in the housing market’s sails.
If you’re thinking of buying or selling, 2022 may be your year. While prices likely won’t fall this year, they won’t continue to skyrocket as they did in 2020 and 2021. Partner with one of our professional agents at Ashurst Niemeyer to discuss your goals and the unique opportunities you have in today’s housing market. Click here to search for properties in Baldwin County.
Sources: LendingTree.com, NAR.com, Forbes, Realtors, BLS.gov, Redfin, FreddieMac.