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2022 Housing Market Update

January 19, 2022

As we ring in 2022, make all the resolutions and think and hope and plan about what the new year has in store, it’s important to have an updated outlook into the future of the housing market for the year ahead!


2021 was another eventful year bringing consistently low rates, a competitive seller's market, and countless opportunities for homebuyers and homeowners alike. 2022 is shaping up to be another year full of opportunity, but here are some key things to keep your eye out for.


Strong Purchase Market

In 2020 and 2021 the market saw an increase in refinances due to rates hitting historic lows over and over again. This means that people with existing mortgages had the opportunity to take equity out of their homes or save money by taking advantage of rates lower than what they currently had.


As we enter 2022, there will be a shift from refinances to purchases. This isn’t to say that all refinances will go away, but the mortgage market will be dominated by people buying new homes. According to the market forecast from Mortgage Bankers Association, or the MBA, 2022 is projected to be the largest year for Home Purchases on record. This applies to both New Construction and Existing Home Sales. The Projections are that there will be nearly $1.8 billion dollars in Purchase Originations in 2022, which is roughly 8 percent higher than 2021 and 16 percent higher than 2020. Additionally, according to the US Census, more first-time homebuyers will be entering the market in 2022 than ever before, meaning demand will remain high.



Home Prices

It’s incredibly important to note that we are not in a housing bubble in which home values are expected to decline. Again, we are NOT expecting home values to decline in 2022. While according to realtor.com, home prices have soared into the near 20% range nationally over the last 12 months, this is not artificial inflation. While the MBA does expect the rates of inflation to stabilize closer to the 5-6 percent range there is no sign or prediction of declining home values in 2022.



Mortgage Interest Rates

Based on recent Fed decisions to taper their Bond/Treasury purchases and projections on inflation, we should expect to see rates rise above their current levels. Before you get nervous, rates are still expected to remain low. While we ended 2021 with a 30-yr fixed rate close to 3%, the MBA expects to see rates rise to closer to 4 percent by the end of 2022. 4% is unlikely and should not deter home buyers from purchasing homes as it is still an incredibly low rate when looking at it through a historic lens.


Additionally, it’s not predicted that rates will drop to 2020 or 2021 rates in the near future so there is still a cost to waiting due to and not taking advantage of 2022 market rates.



2022 & Beyond

The MBA is forecasting that we see rates stabilize in the low 4% range. Again, these rates are still historic lows and should encourage new home purchases well into the future. Purchase originations are projected to continue to rise and hit somewhere around the $1.83B range in 2023, which would be a 6% increase over 2022 AND the largest Purchase Market on record.


As mentioned earlier, we are expecting to see more and more first-time home buyers enter the market. According to the US Census, the average age of the first-time Homebuyer is 33, and the number of people turning 33 will be over 4million annually for the next 10 years. All of these factors – rising interest rates, home appreciation, strong demand, and limited supply – will continue to drive a strong Purchase Market for the foreseeable future.

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Q1 Recap

By Mikaylah Collins • April 12, 2023
We've begun to see signs that the Spring Market is here and could be robust! Here is what we know: According to NAR, home sales were up 14% in February over the previous month which marked the biggest monthly increase since July 2020. While March results are not yet published, the mortgage industry saw an increase in purchase applications for the 3rd straight month; a great sign for the housing market. Driving much of this activity is the stabilization of rates in January & February and lower interest rates this past month. We’re starting to see signs of a slowing economy and the markets are now pricing this in. This week we saw the 10-yr Treasury drop under 3.4%, a level it has not reached for quite some time and the lowest it’s been since September 9, 2022. This is great news for consumers as decreasing rates mean more home affordability. Over the past year, most markets have seen home prices stabilize if not even decline, albeit by a very small amount. This stabilization was still a relief for homebuyers as it helped to offset higher interest rates. As rates continue to decrease, we would expect home prices to again increase due to demand increases. In addition to increased demand, there is still a shortage of homes for sale nationwide and that will continue to worsen as more and more homebuyers enter the market.  So what does it all mean? Now is a GREAT time to buy a home! Rates and home prices are stable, there is not as much competition as there will be when rates do decrease, and buying a home is still extremely affordable for most. Once rates fall, we will likely see home prices rise and the competition for the shortage of homes will increase alongside it making the window of a buyer-dominated market very small.

Q1 2023 Market Outlook

By Sarah Rubin • February 10, 2023
We are well into Q1 and feel confident saying that the market appears to be stabilizing. Before we start looking forward, let’s quickly look back at the end of 2022.

Finding The Right Listing Agent For You

By Sarah Rubin • December 15, 2022
Buying a home is a huge investment and one we talk about often - BUT the flipside is that you have an opportunity to cash in on that investment when you’re ready to sell your home! While you do have the chance to cash-in, a lot more work goes into selling a home than you might think! If you are considering selling your home, working with a listing agent will help you market your home, negotiate with potential buyers, work through paperwork, and ultimately close on your home! So what is a listing agent? In its most basic terms, a listing agent is a real estate professional who represents the seller in a real estate transaction. The listing agent lists the home for sale and works on behalf of the seller to sell the home at the best price and terms for their client. Listing your home is a BIG deal and it is not a place to try and DIY. But why can’t you just grab a sign at Home Depot and try and sell yourself? Well, there are lots of reasons some of which include: Professional consultation: A listing agent will walk you through each step and tell you what to expect along the way! They should understand the specific community you’re in and the current market environment and will help you determine a competitive but realistic asking price for your home. Marketing and selling your home: Your listing agent will list your home on the multiple listing service (MLS) in order to better market your home to potential buyers. They also can make staging recommendations and hire a photographer to best show off your home and its features. They’ll schedule house showings, and can be present to answer any questions. Communication and negotiation: Communication is key to both buying and selling a home in order to minimize stress and misunderstandings. Listing agents take care of this important task, by staying in touch with interested buyers and their agents, fielding questions, handling paperwork, and negotiating the final sale price and terms. Recommendations: Seasoned listing agents might come with a list of professionals who they have worked with in the past that they enjoy working with in order to make the selling process smoother for you! Some of these professionals include: real estate attorneys or title companies, inspectors, stagers, those who specialize in home improvement AND of course trusted Loan Officers. How do I find the right listing agent for my situation? In order to find the right listing agent for you, make sure your agent is licensed and has experience, references, and a professional website where you can learn more about them and their qualifications. Most real estate agents work with both buyers and sellers, but some might specialize in one or the other. Once you find a few agents through referrals or online research, meet with them in person to ensure they meet your needs and work well with your personality. It is also important to ask questions during your meeting with them and it’s imperative that you determine what you’re looking for in an agent so you make sure you are happy with the product being delivered. Selling a home can be stressful, especially for first-time sellers. A listing agent can help by taking on some of the burden and providing the information and resources needed to help sellers make informed decisions. We work with agents on both sides of the transaction – if you have any questions or would like a recommendation for an agent in your area, please reach out to us!
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