The most common question I get asked is, how’s the real estate market? And with so much information and uncertainty out there, it can be hard to cut through the noise and really see what’s happening in this market. In fact, I’ve seen so many different markets over my last 27 years in this business, it really seems like I’ve seen it all.
Let me help you better understand what’s going on currently. Looking toward 2022, let’s talk about one of the hot topics, and that’s mortgage rates. Now, Doug Duncan at Fannie Mae says, and I quote, “Right now we forecast mortgage rates to average 3.3% in 2022, which is slightly higher than 2020 and 2021. By historical standards though, remains extremely low and supportive of mortgage demand and affordability.” So, yes, mortgage rates are on the rise, and we have even seen rates consistently up above 3% in the last few weeks. This means that it will be more expensive for you to purchase a home, so you want to get in on the action right now.
But mortgage rates, they’re not the only thing on the rise. Home prices are projected to rise as well, though not as quickly as they have been recently. While last year brought us appreciation rates of up to almost 20%, 2022 is projected to bring us appreciation rates of around 5% according to industry experts. What does that mean if you’re selling your house? Well, that’s a great question. The demand is still higher than supply, meaning buyers are willing to pay top dollar for your home. This seller market isn’t promised forever, so take advantage while it’s still here.
