By Barb “Matty” Matyszczak • RE/MAX 440 – Doylestown
The question I’m asked most often as a Realtor is “How long will this market last?”. Especially with the “Selling Season” coming (March to the end of August) people want to know if they can hold off to sell their home (since where will they move to in this heightened market?) or should I buy now with the interest rates rising despite the high prices. Hopefully the information below will give you some clarity.
At the 2021 National Association of REALTORS Conference and Expo in San Diego, California, NAR Chief Economist, Lawrence Yun, proclaims that the outlook for residential real estate continues to look promising.
“All markets are seeing strong conditions and home sales are the best they have been in 15 years, Yun said. “The housing sector’s success will continue, but I don’t expect next year’s performance to exceed this year’s.”
Predictions indicate that sales may decrease in 2022 but residential property transactions will still surpass transactions prior to the COVID-19 pandemic. This prediction is founded on the basis that more properties will be listed for sale within the next year due to new housing construction and the end of mortgage forbearance assistance.
“With more housing inventory to hit the market, the intense multiple offers will start to ease,” Yun said. “Home prices will continue to rise but at a slower pace.”
Progress in the employment market continues to upsurge post-pandemic as the United States surfaces from lockdown. Millions of job opportunities have been generated since the pandemic and the unemployment rate continues to drop drastically. Multiple States report that employment opportunities are flourishing and have completely recuperated from the COVID-19 pandemic.
Residential property sales have swelled in 2021 but a more probable market is hoped for in 2022. Mortgage loan rates may also see an increase within the next few months due to a rise in inflation.
“Rising rents will continue to place upward pressures on inflation,” he said. “Nevertheless, real estate is a great hedge against inflation.”
Yun projected that mortgage rates, which are currently at 3.0%, will see an increase of 3.7% in the coming months, a rise he attributes to persistent high inflation. Home prices rose by 12% on average in 2020 and 2021, while inflation rose 3%.
So the verdict is…… well, that depends on your situation. My best advice would be to contact an experienced Realtor in YOUR market who can guide on what your timing should be, and help you understand how easy or difficult it will be to find your next move for your specific situation.
Barb “Matty” Matyszczak is a Realtor, Manager, CRS, GRI, ABR, CDPE, 203k Specialist, SRES and a Five Star Agent Award Winner 2015-2021. She can be reached at 215-348-7100, barb@barbmatty.com or visit www.barbmatty.com
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