The year gone by was no less than a bidding war in the housing segment. Last year saw a sharp rise in home prices with an astonishing growth of 20% more which the experts say was more than what was seen in the run-up to the 2008 crash. The pandemic spelled an uncertainty of lumber shortages, remote work exodus, and even record-low of mortgage rates that may cause uncertainty for 2022.
The changes in housing prices
Many people are getting deep into the housing market analysis, but there is no need to confirm the worst outcomes. Experts are hopeful that there would be a moderate rise of 7.9% at the end of 2022 though it may seem insignificant when looking at the previous year’s numbers which had seen a doubled figure which created quite a bit of stir in the real estate market since a long time.
Experts opine that the growth rate over the years since 1987 has been at the rate of 4.1% per year. Yahoo Finance reports that this shows that those who were priced out in 2021 need to curb their expectations. The market may just be a bit favorable to the buyers since the scenario will see a minor shift and prices will be less scorching though a good price appreciation is expected. An immediate fall isn’t on the cards, but surely the prices will gradually make their way downwards.
Forecast for 2022
There is a significant rise in mortgage rates due to the pandemic. It enabled the interest rates to go really low, making it easier to borrow money than ever before. The buyers had a field day, with many rushing to get those loans cheap. But they are now rising, though it may not result in an imminent crash because there still is a crunch for homes that are for sale. The prices are bound to appreciate even there may be a drop in demand. However, mortgage rates are still low at 3.3%.