Four real estate market trends to watch in 2022
Much of the home buying craze of the last two years was spurred by record-low mortgage rates. In January 2021, the average rate of a 30-year loan was at an all-time low of 2.93%, but that rate could rise to 4% by the end of this year. While that may be bad news for your budget, higher rates could also help slow rapidly rising prices and improve housing availability.
Stock market volatility
It’s likely that the stock market will continue to be highly unpredictable this year. A dip in the market could keep the Federal Reserve from raising mortgage interest rates, and real estate is often a safer investment when stocks are volatile.
With many companies extending their work from home policies, workplace flexibility is expected to continue in the new year. This frees up many buyers to extend their home search into suburban areas in search of lower prices and more space.
Housing affordability will continue to be a challenge for many homebuyers. The market is still in favor of sellers, but rising home prices are showing signs of slowing. A knowledgeable real estate agent can help you make a plan to buy in a challenging market.