Consumers preparing to buy homes for the first time should know the ins and outs of the 2022 real estate market forecast. Analysts are making some strong predictions about the 2022 real estate market. It is crucial to know these predictions, where you trust them or not. With so many analytic real estate predictions, a few mispredictions should be expected. When all said and done, the 2022 real estate market will go one way or the other. In the meantime, you need to take advantage of the research conducted by reliable sources like Fannie Mae, John Burns Real Estate, and Freddie Mac. Image source
What Fannie Mae Is Saying About The 2022 Real Estate Market
Fannie Mae is one of the largest mortgage companies in the United States. Backed by the United States government, Fannie Mae guarantees, and purchases mortgages previously issued by other home lenders. Unlike average home lenders, Fannie Mae does not directly issue home loans to American consumers. However, the company plays a major role in the American real estate market.
Fannie Mae predicts the 2021 U.S. real estate market to end inhigher home sales, as compared to 2020. The company predicts 2021 home sales will total 3.3 percent higher than the previous year. Fannie Mae’s Economic & Strategic Research “ESR” Group predicts a 3.3 percent increase in U.S. home sales in 2021, as compared to 2020. The 3.3 percent forecast is slightly higher than a previous prediction of 3.1 percent.
Affordable Properties Will Continue To Be Limited
Robert Dietz, chief economist at the National Association of Home Builders “NAHB” released a weekly sentiment report in September 2021, stating new single-family home building has reached a “more stable level”.
Home developers continue to face challenges obtaining some building materials. The high demand for building materials has driven up costs across the nation. Dietz predicts affordability will continue to be challenging for home builders in the coming months. Dietz contributes the affordability challenges to an increase in consumer demand and soaring construction costs.
The 2022 Real Estate Market – What To Expect
Consumers searching for available homes Myrtle Beach SC can expect to see limited options. Real estate analysts are predicting more property availabilities, which is expected to have no impact on prices. If these predictions are correct, home seekers will see a 2022 real estate market that is more balanced than in 2021.
Interest Rate Predictions For 2022
Feds are not expected to increase the interest rate in 2021. Nine U.S. Federal Reserve policymakers are expected to increase interest rates in 2022. However, the increase is not predicted to happen until the end of 2022, if it happens at all. Less than half of the red policymakers are anticipating an interest rate hike in 2021.
With so much decisiveness, home seekers can expect to see only minimal interest rate increases. A low-interest rate almost always plays in the favor of consumers looking to buy homes by adding to their buying power.
Continue looking for your beachfront dream home while the interest rate is still low.