The 2022 housing forecast appears to remain strong with some normalization predicted. As with most forecasts, the 2022 housing market outlook certainly has some caveats. Overall, real estate economists are predicting that the market will remain strong through 2022. Although it is expected that sales will not surpass the level seen this year, the expectation is that home sales will exceed the level seen in the years prior to the pandemic. Across the country, all markets are seeing strong conditions and home sales are the best they have been in 15 years.
The wild card
Perhaps the biggest wild card in predicting the future of the housing market is how the work-from-home shift will play out in the future. According to the National Association of Realtors® Chief Economist Lawrence Yun: “We are only in the first innings of work-from-home options.” Mr. Yun continued to add: “People have not fully digested the work-from-home-flexibility model yet in determining home size and locational choice.” As this work-from-home trend continues to gain in popularity, it is important for homeowners to continue monitoring this shift and prepare their homes accordingly in the event of a future sale.
In closing, persistently high inflation is expected as we move forward into 2022. With this said, real estate should be a great hedge against this inflation. Although mortgage rates are currently hovering around 3%, they are expected to rise to about 3.7% in the coming months. This could temper home buyer demand some as well. As for rental prices, they are largely predicted to rise thus putting additional pressure on inflation. As for the South Florida market, it continues to be one of the hottest markets in the country due to the number of Americans relocating to The Sunshine State.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!