It feels like 2021 just started but in two weeks it will already be behind us. It was a strong year for sellers in real estate and mortgage rates remained low throughout the year while we had some appreciation in price. With 2021 coming to a close, let’s take a look at what the real estate market is forecasted to look like in 2022.
Strong Home Sales
If you’ve paid attention to the real estate market over the past couple of years you would’ve noticed that home sales were pretty strong. According to industry experts such as Fannie Mae, Freddie Mac, MBA and NAR, home sales are looking to have another strong year in 2022. Taking an average of the industry experts’ predictions, home sales look to just slightly outpace 2021’s home sales.
Mortgage Rates to Increase
The reason home sales have been so strong lately is partly due to the historically low mortgage rates we’ve been seeing. According to Freddie Mac, the current 30-year fixed-rate loan is at 3.1% which is very low compared to previous years. Looking at the 2022 forecast, mortgage rates are projected to increase to just below 3.6%, according to the average projected mortgage rates from the experts previously mentioned. Though 0.5% may not seem like a big difference, it can have a big impact on how much you’ll pay for a home next year compared to if you bought today.
Prices on the Rise
Another trend we’ve seen recently is the rise in home prices. The combination of low mortgage rates, high levels of competition and low inventory have been favorable to sellers and the increase in average sale price over the past couple of years has been the result. Home prices are expected to appreciate again in 2022 by an average of 5.1%.
What should you do if you’re on the fence about buying a home? Talk to a local real estate agent! First Weber real estate agents have valuable industry knowledge and experience that can help you navigate the home buying process.
First Weber sells real estate throughout Wisconsin: Metro Milwaukee and Southeastern WI, South Central Wisconsin/Greater Madison, Central Wisconsin, Northeast Wisconsin, Western WI, parts of MN, Michigan’s UP and Wisconsin’s great Northwoods. You can start searching for Wisconsin real estate and Wisconsin real estate agents at firstweber.com
Sources: Keeping Current Matters, Fannie Mae, Freddie Mac, MBA, NAR