What Does the Rest of the Year Hold for the Housing Market?

By
Real Estate Broker/Owner with Arizona Resource Realty BR518926000

If you’re thinking of buying or selling a house, you’re at an exciting decision point. And anytime you make a big decision like that, one thing you should always consider is timing. So, what does the rest of the year hold for the housing market? Here’s what experts have to say.

The Number of Homes Available for Sale Is Likely To Grow

There are early signs housing inventory is starting to grow and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com:

“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”

  • As a buyer, having more options is welcome news. Just remember, housing supply is still low, so be ready to act fast and put in your best offer up front.
  • As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, having more options to choose from should make that move-up process easier.

Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures

Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First Americansays:

“… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”  

  • As a buyer, work with trusted real estate professionals, including your lender, so you can learn how rising mortgage rate environments impact your purchasing power. It may make sense to buy now before it costs more to do so, if you’re ready.
  • As a seller, rising mortgage rates are motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a trusted real estate advisor to decide how to time your move.

Home Prices Are Projected To Continue To Climb

Home prices are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – but home prices won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.” 

  • As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that, once you do buy a home, it will likely grow in value. That makes it historically a good investment and a strong hedge against inflation.
  • As a seller, price appreciation is great news for the value of your home. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your house and buying your next one.

Bottom Line

Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. Let’s connect to discuss your goals and what lies ahead, so you can pick your best time to make a move.

Posted by

Specializing in Payson AZ Real Estate, Bank Foreclosures, Homes for Sale in Payson, Land for sale in Payson, and more... Visit me at www.ArizonaResourceRealty.com and learn about my REO Broker Profile in Arizona.

 
 
Professionally,
 
     
TAMRA LEE ULMER   OWNER / BROKER  
 
NRBA~ FORCE ~A-REO™~CREA~ CDPE~ NABPOP~ C-REPS~ FIVE STAR ~ BPOR ~ WBENC  
 
 
***  
 
OVER 1000 REO PROPERTIES SOLD SINCE 1999!... EXPERIENCE COUNTS!  
 
 
m. 480-442-8617  
 
t. 928-474-2550 ext 700  
 
e. Tamra.Lee.Ulmer@ResourceAZ.com  
 
w. ArizonaResourceRealty.com  
 
***  
 
CREA - Certified Real Estate Auctioneer®  
 
www.ArizonaPropertyAuctions.com  
 
Servicing The Heart ♥ Of Arizona Since 1999!  
 
NOW HIRING SUPERSTAR AGENTS FOR HEAVY LEAD FLOW!  
 
 
                   
 
 
The information in this electronic mail message is the sender's confidential business and may be legally privileged.
It is intended solely for the addressee(s). Access to this internet electronic mail message by anyone else is unauthorized.
If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to
be taken in reliance on it is prohibited and may be unlawful.
 
       
 
Learn how to become friends with Change... as it is the only thing in life that's Certain!
 
 

Comments (5)

Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Jul 04, 2022 03:41 AM
Tamra Lee Ulmer

I'm glad you liked it, Richard. Happy 4th of July!

Jul 04, 2022 12:58 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Tamra. No crystal ball about future trends. The it is time to buy, it is time to buy and the same for selling. Likely to see how local the real estate market can be as many areas buck overview trends. Time will tell. Enjoy your day.

Jul 04, 2022 05:21 AM
Tamra Lee Ulmer

Thanks for your time, Wayne. Happy 4th of July!

Jul 04, 2022 12:59 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Tamra it has been ages since you posted on this platform, nice to see you back with such a great post. Happy 4th of July to you, Endre

Jul 04, 2022 10:58 PM
Tamra Lee Ulmer

Thank you very much, Endre.  I appreciate it. 

Jul 05, 2022 10:29 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Agree that home prices will continue to rise, as demand isn't slowing down that much. However, a more balanced market would be welcome!

Jul 05, 2022 02:01 PM
Tamra Lee Ulmer

Thanks for reading, Mary. Have a great week!

Jul 06, 2022 02:53 PM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

I remember all too well when the housing crash started in 2007 NAR's Lawrence Young doing a media tour denying that there is a big problem and that the housing market will rebound that year. Wrong! It took six(!) years for the market to start its rebound in 2013. Quoting Yun as a source of information or opinion does not add credibility.

Here's a link to just one article out of many from 2008 ridiculing Yun and NAR, impugning the integrity of Realtors in general as peddling misinformation with ulterior motives:

https://seekingalpha.com/article/76981-nars-lawrence-yun-continues-to-mislead-on-housing

May 13, 2008 5:07 AM ET
 
 

A Google search of NAR Lawrence Yun 2007 2008 false predictions of the housing market will result in more articles criticizing Realtors, NAR and Yun. 

Jul 05, 2022 04:51 PM
Tamra Lee Ulmer

Thanks for your time, Dave. Have a great week!

Jul 06, 2022 02:54 PM