I know, I know. We’re barely into the spring, and here we are talking about what the housing market might be like in 2022. Bear with me. There’s a method to the madness.
Right now, housing market inventory is still woefully low in many cities across the country, while competition remains high. As a result, a lot of would-be home buyers are considering postponing their purchases until next year. The idea is that home-buying conditions might improve in the near future, compared to how things are right now.
This leaves a lot of folks wondering: What will the U.S. real estate market look like in 2022?
There’s a lot we don’t know about future housing conditions, and a lot of variables that could change between now and then. (Just look at all of the curveballs life threw at us during 2020!) But what we can do is examine current housing-related trends and offer a bit of data-based speculation.
With that in mind, here’s what we think the real estate market will be like in 2022.
What the Real Estate Market Could Be Like in 2022
Higher mortgage rates. Higher home prices. Lingering inventory problems. Those are just a few of the trends we expect to see within the U.S. housing market in 2022. Here’s a closer look at these and other factors that could shape the real estate scene next year.
1. Less demand from home buyers.
Last year (2020) was a big one for the nation’s real estate market. Home buyer demand surged, despite a global pandemic and economic slowdown. Record-low mortgage rates contributed to this, along with a newfound appreciation for homeownership.
Demand among buyers remains strong today, as we move into the spring of 2021. But what about next year? What will the real estate market look like in 2022, from a demand perspective?