(RepublicanPress.org) – Continued COVID-19 restrictions, supply chain issues, and Democratic-led COVID-19 relief programs contributed to rising interest rates as 2021 started drawing to a close. As a result, analysts can’t reach a consensus regarding the upcoming 2022 housing markets.
On November 17, online real estate marketplace Zillow published a forecast for home prices in 2022. According to its estimates, home prices would increase about 13.6% in the next year, ending in October 22. While that figure represents a drop from the year-on-year rise of 19.9% from August 2020 to August 2021, Zillow’s outlook doesn’t look good for financially stretched homebuyers trying to survive in a post-pandemic economy.
If Zillow's 13.6% price growth prediction turns into reality, then the 2022 housing market would also go down as one of the hottest on record. https://t.co/l4akmntAFC
— FORTUNE (@FortuneMagazine) November 18, 2021
At the same time, other market experts provided varying estimates for home sales in 2022. For instance, the Mortgage Bankers Association recently projected a 2.5% price decrease by 2022’s end. On the other extreme, Goldman Sachs sees home prices rising by around 16% by the end of 2022.
However you look at it, economic uncertainty coupled with the possible rise of new COVID-19 variants all contribute to housing market volatility moving into 2022. Additionally, Zillow’s forecast suggests that rising demand from buyers who work remotely and the surge of first-time buyers could lead to a shortage of new houses in 2022, a situation that could lead to higher-than-expected price increases.
Are you planning on purchasing a new home in 2022?
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