What to Expect Q3 & Q4 of 2022 In The Housing Market
Since the beginning of the year, the US economy has been cooling a bit. After several years of strong growth, rising inflation and energy costs are impacting US households in ways not seen since the 1970’s. For those who are considering buying or selling of real estate, there seems to be a bit of confusion and fear surrounding the economic slowdown & how it may affect their options.
George Ratiu, a senior economist with Realtor.com, outlined in a recent article, his predictions for the second half of the 2022 US Housing Market. Here are his highlights:
· Mortgage Interest Rates – As the Federal Reserve continues to tighten credit flow to slow the economy and fight inflation, expect to see rising mortgage interest rates as well. Ratiu predicts interest rates as high as 6% by the end of 2022.
· Home Prices – Home prices will continue to rise, just not as quickly as we’ve seen in recent years. There are absolutely still buyers in the market who will likely want to jump ahead of the rising interest rates and any future uncertainty.
· Sellers Advantage – Sellers have enjoyed a strong seller’s market for the past several years and Ratiu expects this to continue for well-positioned homes. Homes priced reasonably and in good condition will continue to garner multiple offers through the rest of 2022.
While inflation and rising interest rates are impacting the US economy, we should still expect the second half of 2022 to be a good market to make a move - for BOTH buyers & sellers. The slower pace should also allow them to carefully consider Offers and give buyers a little longer to make decisive moves.
© Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | SavvyBroker@me.com | What to Expect Q3 & Q4 of 2022 In The Housing Market
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