If you are a homeowner looking to sell your home in 2022, then you may be in search of guidance on how to proceed, or you may want to at least gain some insight into current market conditions to make a well-informed choice. In today’s evolving world, it is very important to have a solid understanding of the times and how they can impact your prospects. Here is a look at market conditions for the upcoming year.
A Brief Glance At 2021
Before we get into 2022, let us take a short look back at 2021 to establish a frame of reference for what the upcoming year may hold.
Simply put, 2021 was a strong year for housing. This may come as a surprise given the COVID-19 pandemic and the myriad social and political changes that homeowners transitioned through. Despite unprecedented factors, or perhaps because of them, homes were in high demand.
Two Different Metrics
Housing prices: According to Amy Brennan at CoreLogic, “Nationally, home prices increased 17.2% in June 2021, compared to June 2020. On a month-over-month basis, home prices increased by 2.3% compared to May 2021.” As you can see, the recession, which got its start around February 2020, did not deter buyers from seeking homes. The reasons for this are complex. CoreLogic’s report provides further insight into this subject.
The total number of homes sold: Research by Statista Research Department puts the projected number of homes sold in 2021 at 7.1 million. For reference, approximately 6.5 million homes were sold in 2020, a significant increase.
What About Growth In 2022?
So, where does this leave us regarding 2022? Further research shows that the housing market appears to be normalizing, although this certainly does not mean it is hitting a slump. Take, for instance, Freddie Mac’s forecast, which states that there will be house price growth of 7 percent in 2022 and a total of 6.8 million home sales.
Statista Research Department estimates that home sales for 2022 will be approximately 6.7 million. Note: Figures vary depending on source and date.
A Potential Downside
One possible downside to rising housing prices is that high prices either discourage or completely block buyers who have been priced out. The good news is that rising prices are balanced out by a few key factors.
Mortgage rates: According to an October 2021 press release from Fannie Mae, “The ESR Group forecasts mortgage rates to average 3.3 percent in 2022.” In the press release, the mortgage loan giant also says that mortgage rates are rising. However, our opinion at EXP Realty is that mortgage rates are much lower than what homebuyers have historically paid in the modern era, thus incentivizing buyers.
Housing inventory: A different press release from Fannie Mae in September 2021 states that there is a limit on supplies and a low inventory of homes for sale. Our take is that with fewer than average homes on the market, homes become a coveted commodity. Potentially, this could impact how quickly you find a buyer.
Buyer demand: According to Goldman Sachs, rising housing prices have caused homebuyers to become “reluctant bulls,” but, of course, the demand for homes is still present. Meanwhile, the Executive Vice President at RealtyTrac, Rick Sharga believes that buyer demand will continue due to low mortgage rates and the large number of millennial homebuyers who are new to the market. He also believes that the pandemic has played a significant role in furthering buyer demand, as many people have moved to work-from-home positions and are wanting larger homes in areas away from dense urban populations.
Long-term homeowners who have the advantage of skyrocketing market value may be inclined to cash in on their equity, especially since many long-term homeowners are empty nesters who may be looking to downsize. At the same time, some homeowners may be incentivized to hold onto their homes while prices continue to increase. Despite this latter point, the projected number of home sales for 2022 shows a willingness on the part of homeowners and buyers to take risks. If you are looking to sell, we offer low listing rates so that you get the most from the equity you have built.
Are You Looking To Sell?
If you are looking to sell your home in 2022, we would love to help you. We have years of experience and a team of exceptional real estate experts dedicated to meeting your needs. We list your home for 1%, utilizing technology and highly refined tools to reduce our overhead and pass the savings to you. We are a full-service brokerage with thousands of home sales under our belt. This is why we were named Best Of Las Vegas for Best Real Estate Company four years in a row! For more information, you can call us at 702-545-0020, visit our website, or use our convenient contact form. We would love to hear from you!