Here’s a look at what to expect from the 2022 housing market.

Many people are on the fence about whether to get into the housing market because they’re just not sure how 2022 is going to shake out. So what do economists and analysts predict for the market in the new year? Today I’ll share the latest details you need to know.

Most experts say that mortgage rates are going to rise. Right now, at around 3%, we have historically low rates for 30-year fixed mortgages; for 15-year fixed-rate mortgages, the rate is 2%. However, the National Association of Realtors’ chief economists have forecasted that by the end of 2022, the 30-year fixed rate will be up to about 3.5% as the Fed raises interest rates to try to control inflation.

This will impact the market by decreasing the number of buyers. If there are fewer buyers in the market, that means  homes will receive fewer offers, and sales prices will be closer to asking prices than they have been in the past year.

“I think we’re going to see the most normal—if there is such a thing—spring market that we’ve seen in three years.”

Experts also say that home prices will rise, but not at the same pace as they did in 2021. The breakneck pace of last year’s housing prices needs to slow down anyway; Snohomish County prices rose by about 23%, Skagit County rose by 30%, and believe it or not, Camino Island went up almost 70%! The NAR estimates that home prices are going to rise by 5.7% nationally this year.

Similarly, there will be fewer bidding wars in 2022, but they’ll still happen. Homebuyers will continue to be frustrated with the lack of inventory, and homes will take longer to sell. The market is expected to cool down a few degrees with increased interest rates and more inventory as sellers try to get in on their last chance to make huge gains on their properties. 

Overall, I think we’re going to see the most normal—if there is such a thing—spring market that we’ve seen in nearly three years. 

Hopefully, this helped to shed a little light on what we expect to see for the housing market this year. If you have any questions or need assistance, don’t hesitate to give us a call or send us an email. We’d love to help you.