Americans may have a better chance of buying a home in 2022 as more sellers enter the market, but they will face stiff competition as demand outstrips the inventory pick-up, according to the reports. Realtor.com housing forecast 2022. Listing prices, rents and mortgage rates are all expected to rise as income levels rise, presenting a mix of housing affordability challenges and opportunities.
The demand for millennial housing has been increasing for years, but eventually peaked during the pandemic. A decade-long housing shortage has converged with a new opportunity for young buyers to pursue their first home. Over the next year, millennials will represent 53% of potential buyers considering buying their first home. Although inventories are expected to make a slight comeback in 2022, demand from first-time buyers is expected to exceed new and existing inventory for sale. As a result, the study concludes that buyers will face stiff competition by 2022. Researchers even predict that this level of demand could continue over the next three years as millennials complete their first few years of shopping. home, baby boomers are starting to downsize and a fraction of Gen Z are reaching home buying age.
“Whether the pandemic has delayed plans or created new opportunities to take a step, Americans are poised for a blitz year of home buying in 2022,” Realtor.com chief economist Danielle Hale said. “With more sellers expected to enter the market as buyer competition remains fierce, we expect strong home sales growth at a more sustainable pace than in 2021.”
However, more and more sellers are planning to hit the market this winter, creating more inventory for first-time buyers. Home sales are expected to increase 6.6% year-over-year in 2022, which would be their highest level in 16 years as buyers remain active and inventories for sale recover, according to forecasts by housing. Buyers should expect to see record listing prices, quick sales, and limited put options, as existing home sales lag behind pre-COVID levels. The gap in the supply of new constructions of 5.2 million new homes is expected to narrow by 5% in 2022 as builders ramp up production.
Affordability will be more of a challenge as interest rates and prices rise, but remote working can broaden the search areas and allow young buyers to find their first home sooner than they do. would not have done otherwise. And with over 45 million millennials in the 26-35 age bracket making their first purchases by 2022, we expect the market to remain competitive, ”Hale added.
As the economy grows and unemployment declines, larger paychecks will allow more buyers to be competitive even as housing costs rise. Additionally, more employees have the power to negotiate flexible workplace accommodations, allowing homebuyers to explore low-cost markets further away from expensive cities. In fact, data from a recent survey shows that nearly one in five potential salespeople (19%) are considering moving because they no longer need to live near the office, up from just 6% in the spring.
“Our housing forecast suggests that we expect another year of dynamic activity, but 2022 will also come with growing pains as we navigate the path from the peak of the pandemic to a new normal,” said George Ratiu, economic research director for Realtor.com. “With most real estate markets expected to be competitive in 2022, it’s important to remember that you are in control of your real estate journey. The bottom line for buyers is to make sure you are comfortable with your schedule and budget – and especially for young buyers who are making this massive financial decision for the first time. For sellers, consider the conditions in your local market as well as the likely increase in the number of homes for sale, and price yours competitively. The good news is that sites like Realtor.com® are providing more advanced digital real estate tools than ever before, including one-on-one correspondence with high-quality real estate agents in your area, to help chart the best course for you. and your family. “