Each week we give you our insight and analysis on the housing market and the economy. We talk about the factors that will influence the Southwest Florida real estate market.  This week we thought it would be fun to research top housing expert predictions for 2022 on the national level.  Keep in mind, local markets may vary, and our sources are from a wide range of experts and data sources.

The National Association of Realtors conducted a study of 20 top economic and housing experts and issued a report.  We will use this report and several other expert predictions and hopefully a consensus will form.

The NAR report from 20 experts predicts home prices will climb 5.7% in 2022 while inflation will tame and settle in at 4% for the year. The group predicted the Fed will raise their rates twice in 2022 by .25% each time.  Just this past week the Fed announced it is looking at increasing rates three times in 2022.  If the Fed follows through with three rate hikes, this will exceed this group’s predictions. Lawrence Yun, chief economist for NAR predicts 30-year mortgage rates will rise to 3.5%.  We have seen other predictions that suggest 3.6% to 3.7% recently.

Yun predicts about 6 million sales in 2021 and about 5.9 million in 2022.  Rising rates may stall home sales, but they are still predicting price gains.

Another article from Fortune Magazine studied 7 forecast models for 2022.    The article quotes Zillow predicts a 13.6% price gain from October 2021 to October 2022 while Goldman Sachs predicts 16% between October 2021 and December 2022. Additional article from Forbes Magazine with Top Housing Experts Predictions for 2022.

The reason for their rosy outlook stated demand outpacing supply and no letup in millennial home buying growth. Fannie Mae and Freddie Mac are predicting 7.9% and 7% price gains respectively.  Redfin and CoreLogic see price gains of 3% and 1.9% in 2022.

More articles quote more sources, so there seems to be no shortfall of predictions.  The consensus seems to be more price gains in 2022 to varying degrees, increased interest rates and borrowing costs for buyers, and inflation.  Builders are still going to build, but not fast enough.  Hopefully supply chain issues will abate in 2022.

All these articles sort of prove the point that now is a good time to buy or sell.  Prices are likely to go up along with borrowing costs, so it is definitely advantageous for buyers. Sellers may finally have enough equity to move on to their next home.  Prices have risen enough to make some sellers want to move.

No matter whether you’d like to buy or sell, or both, the Ellis Team at Keller Williams has tools to help you.  I met with a seller the other day that needs to sell before he can buy, but he’s afraid of being homeless and not finding a property.  I told him about a program that allows him to purchase a home first, then put his home on the market and only pay one mortgage payment.  This way he can find a home that suits his needs and purchase it without having to sell.  He can then move in a relaxed atmosphere and have time to sell his existing home, all with one low payment.

If you are thinking of selling, there are solutions.  For other sellers we have been able to negotiate delayed occupancy after closing to allow time to purchase a different home and move out.

If you are contemplating selling but don’t know how you could do it, call Sande or Brett Ellis 239-310-6500.  If you are just curious as to your home’s value, check out www.SWFLhomevalues.com for a fast and free computer estimate.

Good luck and Happy Holidays!

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