US housing demand is about to cool off, says Realtor.com forecast 2022 updatedwhich predicts greater inventory growth, giving buyers a better chance of finding a home.
A new report from Realtor.com sees housing demand returning to pre-pandemic levels due to rising inflation and mortgage rates. It forecasts double-digit growth from 2021.
But despite this growth in demand, affordability issues will be part of the deal as the market continues to see higher home prices and mortgage rates.
Forecasts say a pause in the rapid pace of home sales will make room for active listings, which they predict will grow 15% year-over-year, from the originally forecast growth of 0. .3%. With the summer months conducive to ramping up builder production, combined with the return of seasonality, the housing market could see a refresh in early fall, according to the report.
Realtor.com chief economist Danielle Hale said the big shift in financial conditions since late 2021 has caused the housing market to adjust accordingly.
“As Americans grapple with higher prices for everyday expenses as buyers today face housing costs up 50% from a year ago, recent data on home sales shows that some are taking a step back from the market,” she said. “Our updated forecast for 2022 predicts that demand will continue to decelerate through the summer, which will help accelerate the recovery in inventory.”
Hale says fall could be a great time to find a home for first-time buyers and repeat buyers, but preparation will still be key throughout the year as there remains a seller’s market with prices sticking around. students.
“For buyers who choose to wait until later in the year, take the time to assess your budget so you have a solid financial footing whenever you’re ready to move forward,” he said. she declared.
The updated forecast reflects the trend in the housing market to become more sustainable, but it indicates that sales are expected to reach a near record pace this year.