For the answer to those questions and a little more, let’s turn to the experts. Here’s a look at what they say we can expect in 2022.
Odeta Kushi, Deputy Chief Economist, First American: “Consensus forecasts put rates at about 3.7% by the end of next year. So, that’s still historically low, but certainly higher than they are today.”
Danielle Hale, Chief Economist, realtor.com: “Affordability will increasingly be a challenge as interest rates and prices rise, but remote work may expand search areas and enable younger buyers to find their first homes sooner than they might have otherwise. And with more than 45 million millennials within the prime first-time buying ages of 26-35 heading into 2022, we expect the market to remain competitive.”
Lawrence Yun, Chief Economist, National Association of Realtors (NAR): “With more housing inventory to hit the market, the intense multiple offers will start to ease. Home prices will continue to rise but at a slower pace.”
George Ratiu, Manager of Economic Research, realtor.com: “We also expect a growing number of homeowners to bring properties to market, taking some pressure off high prices and offering buyers more options.”
Mark Fleming, Chief Economist, First American: “Strong demographic demand will continue to act as the wind in the housing market’s sails.”
What Does This Mean for Sellers?
Make no mistake – this sellers’ market will remain in 2022 as home prices on Cape Cod and elsewhere are projected to continue climbing — just at a more moderate pace. Selling your house while buyer demand continues strong will truly put you in the driver’s seat.
While multiple offers were still common at the end of the year on Cape, the money offered over list price was generally speaking not as head scratching as it was earlier in 2021.
So don’t wait too long. With more listings projected to be available, your ideal window of opportunity to stand out from the crowd won’t last forever.
In fact, Mari was out with a buyer on New Years Day! And the spring market is just around the corner.
What Does This Mean for Buyers?
Hope is on the horizon for 2022. You should see your options grow as more homes are listed and some of the peak intensity of buyer competition starts to ease.
Waiting for either prices to drop or a sudden rush of foreclosures that no one is predicting — except maybe your Uncle Harry “who knows a little something about real estate”– is not a successful strategy. It will only cost you money as prices continue to increase.
If you’re thinking 2022 is the year to make your move, we’d be happy to answer your questions. Let’s connect at 508-360-5664 or firstname.lastname@example.org.
You need the right information to make an educated and informed decision about buying or selling in the year ahead.
Have a great week.
Mari and Hank