For nearly two years now, since the COVID-19 pandemic took hold in the United States, the housing market has been booming. Historically low mortgage rates have been one of the embers fueling this hot market – which has driven home prices up significantly.
But how long will this seller’s market last?
According to some forecasts, the housing market outlook for 2022 is bright, with the potential for double-digit growth. In fact, based on a recent report published by Zillow, it is predicted that home prices will climb more than 13% between October 2021 and October 2022.
There was some other enticing data in the report, as well, such as:
- The expectation that home values will grow nearly 4% between October 2021 and January 2022
- A final tally of homes sold in 2021 in the neighborhood of 6.12 million (an increase of 8.5% over the year 2020’s figure)
Given this information, the housing market should continue to remain highly competitive over the next 12 months – and the inventory of homes for sale will likely be tight. So, while this can be great news for sellers, buyers will have to move quickly if they intend to make an offer.
It is also possible that some homes and condos will sell for above their asking price, and that potential purchasers may have a better chance of getting their offer accepted if funding (or funding approval) is already in place, and there are no contingencies in the contract.
If you’re thinking about making a move in 2022, contact us and we’ll help you with determining the right listing price if you have an existing home for sale. We can also work with you in narrowing down your search for your next home, based on the ideal location, as well as the features you have on your new home wish list.