Housing Market Forecast for the Year 2022

Now that 2021 is coming to an end, home buyers (and sellers) can’t help but ask: what’s the housing market forecast for the year 2022? 

According to experts, the housing market will be favorable. No crash will happen, though interest and mortgage rates will soar. Property demand will remain high, though the supply will remain tight. Charlotte, NC homes will continue to increase in price, which is why it's best to make a purchase ASAP.

For those looking to sell, the rise in prices will make 2022 an excellent year to list their homes. Let’s explore these forecasts below. 

What Will Happen to the Housing Market in 2022?

Housing experts are predicting there will be no market crash, unlike what others predicted. The housing market forecast for 2022 is generally good now that the pandemic has begun to ease.

The Market Will Be More Favorable...

According to Paul Buege of Inlanta Mortgage, “Positive indicators are hinting to a more favorable housing market in 2022.”

Contrary to popular beliefs, there won't be a housing crash - like what happened in 2008. Thanks to enacted laws - and more strict lenders - a 2022 housing crisis is unlikely to happen.

...But Interest and Mortgage Rates Will Remain High

As expected, interest rates will continue to increase. According to real estate lawyer Chuck Biskobing, it's due to the inflation of prices. 

He explains that the spike in Fed and market rates will cause rates to soar higher. 

Likewise, mortgage rates may jump to 4% in 2022. 

So if you decide to buy a house next year, expect to be adding $100 to $200 to your monthly mortgage payment.

The High Demand for Charlotte, NC Downtown Real Estate Will Continue...

Demand in 2022 will remain strong in Charlotte, NC - and the entire country in general. It will be driven by low mortgage rates and millennials purchasing homes for the first time.

According to realtor Chuck Vander Stelt, this group will fill the market for years. 

On the other hand, the ensuing pandemic - and the current work-from-home scenario - will drive buyers away from the cities.

Despite being highly urbanized, Charlotte, NC remains a popular choice. For one, it's less populated than other areas and has lots of open spaces. Properties are also bigger, compared to, say, New York City.

...But the Charlotte, NC Housing Supply Will Remain Tight

Right now, the US is struggling with the 'Great Resignation.' Employees are leaving their jobs in droves due to vaccine mandates and/or salary issues.

Unfortunately, it’s already taking a toll on the housing supply in Charlotte, NC.

In a video, Coach Michael White explained how this affects the current supply chain. The lack of staffing will lead to ballooning supply costs. 

The higher the prices are, the more expensive houses will be. 

With everything becoming more expensive, contractors may delay building new units. In addition, they may find it harder to complete units that were delayed because of the pandemic. 

Speaking of the pandemic, some owners are holding off selling due to safety reasons.

The same dilemma goes for luxury homes in Charlotte, NC. These owners don’t need to sell their houses to buy new ones, so they’re keeping more properties off the market. 

While the 2022 housing supply is a little bleak, there's a chance that the inventory will increase. Due to the high prices, sellers who delayed listing may finally decide to push through.

Will Home Values Drop in 2022?

Contrary to popular beliefs, the housing market will not come crashing down in 2022. Yes, the costs of Charlotte, NC homes have decreased a little (they’re at an average $388,000 right now). However, prices will continue to increase.

Again, it all boils down to the law of supply and demand. With more millennials buying - and sellers holding off - listing prices will surely rise in 2022. 

According to a report, Fannie Mae's projections show that property values will jump as much as 13.6%. 

The forecast by Goldman Sachs is even higher. According to their experts, home prices may increase by as much as 16%. 

So if you're eyeing a $250,000 home this year, its price may jump from $284,000 to $290,000 in 2022. 

This price increase is not limited to Charlotte, NC, though. Rates may also soar in smaller or rural communities nearby.

Thanks to the rising living costs - and the work-from-home setup - buyers are looking to settle in less-expensive areas. With the renewed demand, the price of rural homes in 2022 are sure to climb higher.

Will 2022 be a Good Time to Buy a House?

While there's no stopping you from buying a Charlotte, NC home next year, it's best to do it now. According to Showcase Realty agents, it’s “the sooner, the better.”

As mentioned, property values may increase by as much as 16%. Interest rates are also expected to jump due to inflation. 

All this means that it's better to buy now while Charlotte, NC investment property prices are still low. 

In other words, Don’t wait for 2022! Make an offer now (or at least before  Memorial Day.) 

If the previous market trends remain true, you may end up paying more. This will likely be the case if you decide to buy during the hectic springtime season. 

Tip: Look into Charlotte, NC homes right now, right before prices get any higher. It will also help to get pre-approved for a loan once you’re ready to make an offer.

Will 2022 be a Good Time to Sell a House?

The year 2022 may prove to be a golden year for Charlotte, NC home sellers. As mentioned, there is a mismatch between demand and supply. 

According to a report, the inventory is at a historically low 37%. Given the clamor for homes, experts expect a spike in prices come Spring 2022.  

Since buyers will pay top dollar, sellers will need to prepare now more than ever. Thankfully, Nancy Braun and her team can help you out with these - and more.

Remember: while sales won't be as 'frenzied' as 2020 and 2021, they're still good for sellers.

Final Thoughts

This 2022, the real estate market will be more favorable. However, interest and mortgage rates will remain high.

Although the demand for properties will increase, the supply will remain tight. 

Because of this dynamic, Charlotte, NC home prices will continue to rise. 

If you’re a buyer, it’s time to make a move - right before costs increase in Spring 2022. Looking into homes and getting pre-approved for a mortgage will put you a step ahead of the competition. 

If you’re planning on selling your home, 2022 may be your year. With the help of Nancy Braun and her Showcase Realty agents, you’ll get a very competitive offer for your home.