2021 has shown us that, in the world of real estate, anything is possible. In the US, this year has seen house prices in every single state rise to unprecedented levels, with the rate of increase having never been seen before.
Meanwhile, once-hot metro areas like New York and San Francisco have experienced a massive price adjustment, with home value plummeting in super-prime areas. As we begin to see some cooling off in the real estate market, people are already looking toward the year ahead. After such a topsy-turvy year, what are the real estate predictions for 2022?
1. Things Will (Sort Of) Cool Down
For those hoping to one day own a home, predictions of the real estate market cooling down are very much welcome. Economists have said that 2022 will be a much better market for homebuyers, as price growth will have largely flatlined.
The US is used to boom or bust housing cycles, but it seems like this is not going to be one of those times. Rather, prices will remain remarkably stable as we exit this historic seller’s market.
2. New States Will Emerge As Hotspots
One of the major real estate predictions for 2022 is that certain markets will emerge from the shadows to become the hottest places to buy in America. Gone are the days where New York and California hogged the limelight.
This time around, people are flocking to buy homes in more moderately priced areas such as The Carolinas, with Jeff Cook Real Estate offering a range of turnkey family homes. Other hotspots are predicted to be Utah, Arizona, Texas, and Idaho.
3. Mortgage Rates Will Rise
While the housing market will calm down, mortgage rates will not. We have all become accustomed to rock-bottom mortgage rates, which is part of the reason why so many of us are buying right now.
However, this was a situation that could not last forever. Instead, mortgage rates will begin to rise significantly in 2022 and will likely continue to do so for the following year at least. This is more a market correction than anything else.
4. Home Building is Back
The US has long been held back by a lack of home building, which has pushed up prices to unsustainable levels across most major metro areas. Fortunately, this may be coming to an end. The US is entering an unprecedented homebuilding boom right now, one that could seriously improve the supply of quality, affordable homes.
While this will likely lower house prices in areas that receive an influx of supply, this is not necessarily a bad thing. The most affected areas, such as the Bay Area, have been in dire need of a price correction for some time now.
Real Estate Predictions You Can Count On
Whether you are buying or selling, it pays to be ahead of the curve. That’s why I’m here to help For real estate predictions you can trust, make sure to check out my dedicated Real Estate insights today.