Chief Economist of Redfin, Daryl Fairweather, predicts there will be a rush to buy homes at the start of the year to take advantage of the market before mortgage rates rise. That early run on homes will not only emphasize the seller’s market environment we’re in Southern Florida, it will also deplete the inventory of homes for sale. In the second half of the year, he predicts new construction will boost sales slightly. In 2022, there will be 1% more sales than in 2021, and by the end of the year, home price growth will slow to 3%.
Below are some of his top projections for 2022:
- Mortgage rates will rise to 3.6%, bringing price growth down to earth
- New listings will hit a 10-year high, which will hardly make a dent in the ongoing supply shortage
- Rents will increase by 7%
- Homebuyers will relocate to affordable cities
- Homebuyers will take climate risks seriously when choosing a home
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This news article was first published on www.lbmjournal.com/redfin-economist-looks-ahead-to-2022-housing-market/
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