A MARKET UPDATE FROM THE DESK OF TOM HOTTER…
While the wild ride we’ve all experienced in 2020 and 2021 may be waning slightly, it is NOT over. The real estate and mortgage lending industries have certainly seen a prolonged set of market challenges and opportunities unique in our lifetimes.
So, what does the future hold for 2022…
Here are a few things to stay mindful of as we ponder the year ahead.
- As predicted here in the July Restaino Newsletter, mortgage rates remained low through the summer months and began inching upward in September and October. Although interest rates recovered slightly in November, Fannie Mae, Freddie Mac and the Mortgage Banker’s Association all project rates to continue their upward trend in 2022. Overall, lending rates are still at historic lows.
- While home sales have slowed in comparison to the frenzied pace of spring and summer, home prices remain strong year-over-year. This remains good news for sellers, however buyers continue to face the challenges posed by our market circumstances. A sustained lack of inventory, elevated construction costs and an ever-increasing influx of population base all continue to affect our local market conditions.
- Home values have continued to rise throughout 2021, but many predict prices will taper in 2022 as compared with recent years. Freddie Mac goes so far as to suggest, while pricing may cool, values are not expected to drop in 2022.
So, what’s the bottom line…
Whether single family homes or condos, new construction or existing homes, it appears as though we will see the wild ride continue for the foreseeable future!
Best wishes for a safe and healthy holiday season along with a prosperous year ahead in 2022!