November 17, 2021
As of now, the housing market is experiencing 15-year highs that will continue until the end of 2021.1 However, the highs will gradually lessen through 2022, according to National Association of Realtors (NAR) Chief Economist Lawrence Yun. At NAR’s 2021 Conference & Expo in San Diego, Yun said, “All markets are seeing strong conditions and home sales are the best they have been in 15 years,” and “the housing sector’s success will continue, but I don’t expect next year’s performance to exceed this year’s.”1 Paul Buege, president and COO of Inlanta Mortgage, also believes the market will stay strong, but prices and demand will cool off in 2022.2
Already, the number of potential buyers is decreasing. Redfin reported that the number of people planning to move to another metropolitan area has gone from 31.5%, at the start of the year, to 31.1%, in the second quarter of the year.1 Yun predicts that in 2022, there may be a decline in sales, but home sales will still outperform pre-pandemic sales.1 Yun’s prediction is based on the anticipation that there will be more inventory in the coming months.1 And while the new inventory hits the market, “the intense multiple offers will start to ease”; “home prices will continue to rise, but at a slower pace,” said Yun.1 Erik J. Martin, the Mortgage Reports Contributor, and his team talked to seven real estate and mortgage experts about housing predictions for 2022. Most agreed that the market will stay hot since it will take time to regain inventory.2 Like Yun, they believe that competition and prices should moderate.2
There is one thing all experts agree on, according to Martin, and it is that there will not be a real estate market crash, like what happened in 2008.2 Rick Sharga, executive vice president for RealtyTrac, states, “The economy has made a remarkable recovery from the pandemic-driven recession and will likely have regained virtually 100 percent of the jobs lost during the downturn by the end of 2022.”2 Overall, “avoid trying to perfectly time the market,” suggests Martin.2 Buying a house is a big decision, and it should be based on where you are at in life, says Chuck Biskobing, a real estate attorney at Cook & James.2 Keep up to date with forecast numbers month to month, which are provided by CIRB.
1See Peck, “Housing Market to Ride Wave Into 2022?”
2 See Martin, “Housing market predictions for 2022: Rates, prices, and inventory.”
Nina Nguyen // CIRB Journalism Intern