As we’re just coming out of the pandemic, it makes sense that people are hesitant about what the future holds, especially when it comes to their homes. Whether you’re planning to buy or sell in the next few years, it’s important to stay ahead of the trends so you can make the best decision for your family.
Here are five 2022 fall housing market predictions from experts:
The Housing Market May Decelerate in Fall and Winter
Experts believe that the housing market may start to decelerate in the fall and winter of 2022. This is due to a variety of factors. Home prices have been rising steadily for the past few years, and are predicted to continue to do so. This could price some buyers out of the market, or cause them to purchase a less expensive home than they had originally planned.
Despite these potential challenges, the housing market is still expected to be strong in 2022. Low mortgage rates and a growing economy are both positive indicators for the housing market. So, while there may be some slowdown in the fall and winter, the overall outlook for 2022 remains optimistic.
Housing Bubble Unlikely
While some worry about another housing bubble, most analysts believe that such an event is unlikely due to stricter lending standards put in place since the last one. Today’s buyers are actually more eligible to sustain payments and are looking to purchase their first or second homes, while in the past buyers were purchasing several investment properties.
Properties Continue To Stay on the Market Longer
The expected deceleration of the housing market in the fall comes with good news and bad news for home buyers and sellers. The good news is that prices are projected to remain flat or even decrease in some areas, giving buyers more negotiating power. The bad news is that properties are expected to stay on the market longer as inventory continues to outpace demand.
No New Foreclosure Crisis in the Future
Similar to the reduced risk of a housing bubble, there’s also no new foreclosure crisis in the near future. As such, prices are unlikely to drop as a result of foreclosures. In fact, they could potentially rise as people who were holding out for lower prices finally enter the market.
Less Chance of a 2022 Housing Market Crash
2022 seems to be a great year for the housing market. There’s a reduced risk of a housing market crash, and prices are predicted to continue rising. This bodes well for sellers. However, those who plan on buying a home may have to contend with increased competition and higher prices.
Takeaway
Don’t fret, though. Buyers still have a chance as we enter the fall of 2022. Although the market may decelerate, leaving less choice and more competition, there are still plenty of factors working in buyers’ favor.
As such, it’s best to work with reliable realtors who can help you navigate the market and find a property that meets your needs. If you’re in the Northeastern area, our team of Pennsylvania real estate agents can help you find the best place to call home.
