Analysts Divided on 2022 Housing Market Predictions

Analysts Divided on 2022 Housing Market Predictions

(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.

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.

S&P CoreLogic Case-Shiller and Fannie Mae lie between the two extremes, with the former predicting 1.9% price growth in 2022 and the latter forecasting a 7.9% increase.

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?

Copyright 2021, RepublicanPress.org