Even though we have several months of 2021 remaining, real estate experts have already begun shifting their focus on 2022 and beyond. While there are many factors that influence the real estate market as a whole, there are several that have the greatest impact on the consumer and will affect buyers and sellers in the year to come. Let’s take a look at these factors and where they are projected to go in 2022.
Mortgage rates are hovering near record lows, and that’s good news for today’s homebuyers looking for homes for sale in Haines City. Generally speaking, when rates are low, you can afford more home for your money. That’s why experts across the industry agree – today’s low rates present buyers with an incredible opportunity. And while mortgage rates are still low today, the data from Freddie Mac indicates rates are fluctuating ever so slightly right now, as they moved up one week before inching slightly back down in their latest release.
Mortgage rates hover near record lows today, but experts forecast they’ll rise in the coming months. However, even as mortgage rates rise, the anticipated increase is expected to be modest at most, and still well below historical averages. Rates remaining low is good news for homebuyers who are looking to maximize their purchasing power.
Home Price Appreciation
One of the major storylines over the last year is how well the residential real estate market performed. One key metric in the spotlight is home price appreciation. According to the latest metrics, home prices are skyrocketing this year with as much as a 19% year over year increase being seen nationally.
Price appreciation is expected to slow in 2022 when compared to the record highs of 2021. However, it is still expected to be greater than the annual average of 4.1% over the last 25 years. The Home Price Expectation Survey, a survey of over 100 economists, investment strategists, and housing market analysts, calls for a 5.12% appreciation level next year.
If you owned one of the homes for sale in Haines City over the past year, you’ve seen your household wealth grow substantially, and you’ll see another nice boost in 2022.
Number of Homes For Sale
An important metric in today’s residential real estate market is the number of homes available for sale. The shortage of available housing inventory is the major reason for the double-digit price appreciation we’ve seen in each of the last two years. It’s the reason many would-be purchasers are frustrated with the bidding wars over the homes that are available. However, signs of relief are finally appearing.
Historically, housing inventory increases throughout the summer months, starts to tail off in the fall, and then drops significantly over the winter. Last year, the trend was different. Historical seasonality wasn’t repeated in 2020 since many homeowners held off on putting their houses up for sale because of the pandemic. In 2020, active listings peaked in April, and then fell off dramatically for the remainder of the year. However, we’ve been building inventory over the last several months as more listings come to the market and it seems this aspect of the market is beginning to normalize.
While it is impossible to predict the future of the real estate market, experts seem to be in consensus on these important factors as we move toward 2022. As a buyer or seller of real estate, it is important to keep an eye on these metrics to ensure you stay as knowledgeable as possible for the future. Understanding the expert projections for the year ahead will keep you up to date on one of the most important investments of your life, your home.