What Does the Rest of the Year look like for the Housing Market?

Dated: May 31 2022

Views: 10

What Does the Rest of the Year look like for the Housing Market?

What Does the Rest of the Year Hold for the Housing Market? | MyKCM

If you’re thinking of buying or selling a house, you’re at an exciting decision point. And anytime you make a major decision like that, one thing you should consider is timing. So, what does the rest of the year hold for the housing market? Here’s what the experts are saying.

The Number of Homes Available for Sale Is Likely To Grow

There are early signs housing inventory is starting to grow and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com:

“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”

  • As a buyer, having more options is welcome news. Just remember, housing supply is still low, so be ready to act fast and put in your best offer up front.
  • As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, having more options to choose from should make that move-up process easier.

Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures

Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First Americansays:

“… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”  

  • As a buyer, work with trusted real estate professionals, including your local lender, so you can learn how rising mortgage rate environments impact your purchasing power. It may make sense to buy now before it costs more, if you’re able.
  • As a seller, rising mortgage rates are motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a trusted real estate advisor to decide how to time your move.

Home Prices Are Projected To Continue To Climb

Home prices are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. However, experts agree the pace of that appreciation should moderate – but home prices shouldn't fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.” 

  • As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that, once you do buy a home, it will likely grow in value. That makes it historically a good investment and a strong hedge against inflation.
  • As a seller, price appreciation is great news for the value of your home. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your house and buying your next one.

Bottom Line

Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. If you are thinking about potentially making a move, let’s connect to discuss your goals and what lies ahead, so you can pick your best time to make a move.

Blog author image

Leigh Kaminsky

Buying a home is a major life experience. That is why I am dedicated to providing the best possible service to all of my clients. I take great pride in the lasting relationships that I have built duri....

Latest Blog Posts

If You’re Selling Your House This Summer, Hiring a Pro Is Critical

If You’re Selling Your House This Summer, Hiring a Pro Is CriticalIt can be tempting, especially with how hot the housing market has been over the past two years, to consider selling your home

Read More

Homeownership Is a Great Hedge Against the Impact of Rising Inflation Homeownership Is a Great Hedge Against the Impact of Rising Inflation | MyKCM

Homeownership Is a Great Hedge Against the Impact of Rising InflationIf you’re following along with the news today, you’ve heard about rising inflation. Today, inflation is at a 40-year

Read More

Two Reasons Why Today’s Housing Market Isn’t a Bubble

Two Reasons Why Today’s Housing Market Isn’t a BubbleYou may be reading headlines and hearing about a potential housing bubble or a crash, but it’s important to understand that the

Read More

Is the Housing Market Correcting?

Is the Housing Market Correcting?If you’re following the news, all of the headlines about conditions in the current housing market may leave you with more questions than answers. Is the boom

Read More