Following an unprecedented year of growth in real estate in 2021, the largest in history, forecasters believe 2022 will see a moderate increase in pricing. In 2021, low mortgage rates and low inventories helped to push prices higher. Simultaneously, the ongoing pandemic created major shifts in the economy and the way we live and work. Here's an interesting statistic - nearly a third of homebuyers in 2021, purchased a new home at above the asking price. 2021 saw the largest increase in first-time homebuyers since 2017. Those first-time buyers were millennials averaging about 33 years years of age. Redfin's
chief economist Daryl Fairweather said, "The frenzied housing market of 2021 was one for the books."
If you're holding out on buying a home, waiting for prices to decrease, you probably won't get your way this year. Borrowing money was "cheap" last year, with interest rates in the 2 to 3% range. But already, early in 2022 we're seeing rates rise to mid 3%. Median home prices are expected to rise by 5.7%, according to the NAR. It will remain a seller's market. Given that values are still on the rise, especially in these 'Hidden Gem" areas, 2022 could be a great time to purchase a new home.