The new year represents an interesting time to reevaluate the housing market and see what housing experts predict for buyers, sellers, and renters. With the pandemic ramping up home prices in 2020 and 2021, it’s expected that the housing market may lose some steam, especially with more things opening and buyers beginning to push back on surging prices. But how will that affect the rest of the housing market?
Let’s take a look at what realtor experts are forecasting for the housing market in 2022:
- Demand for Homes. Home sales are expected to increase by 6.6% by the end of the year. With millennials finally in the prime first-time buying time of life, and with unemployment on the decline, over 45 million more people will be looking for homes! The demand for homes is still rising in most areas, and even with those in areas where the market is declining, those declines are still modest. If you’re looking to sell, there’s never been a better time!
- Home Prices. The high demand for homes means one unfortunate thing for buyers: the price of homes is projected to continue growing, with a forecast of an overall 2.2% increase of median home prices by the end of 2022. Buyers are, however, beginning to fight back on these high prices, making the increase in prices at a much more moderate pace than what we saw in 2020 or 2021.
- Rent. When the pandemic first hit in 2020, we saw a dramatic decrease in rent prices, especially in homes located in more urban areas. Fast forward to 2022, and there is now a surge in rent prices in more suburban areas since workers can now take advantage of being able to work remotely. This means the demand for rental properties is up, increasing the price. Nationally, we’re forecasting roughly a 7.1% rent growth by the end of 2022 – showing both a rebound from the pandemic and a steady growth ahead of home-price growth.
- Inventory. For-sale inventory hit a low in 2021, and while inventory will likely remain limited, we’re projecting a .3% increase in 2022. More sellers are starting to put their homes back on the market; however, new builds are becoming more prevalent. New builds could be a great option if buyers are willing to wait until their homes are built.
- Demographics. The effects of the pandemic are still being seen in the most popular demographics of houses sold this year. More buyers are looking to move to the suburbs now that they can work remotely, as homes outside cities are often bigger and more affordable.
Choose a real estate agent that will genuinely take the time to understand your wants and needs. Contact Sandy Majetich-Toth at 815-791-2215. I can help you search for a new home or help you sell your current property. Let’s get started today!