Housing market predictions for the second half of 2022
The first half of the year has been a surprising one for real estate. Mortgage rates rose sharply while housing inventory stagnated. Here are some trends we might see as we head into the second half of 2022.
1. Mortgage rates will remain high, but increases are expected to taper off.
Largely due to the Federal Reserve's rate hikes, mortgage rates have risen substantially since the beginning of 2022. With more rate hikes planned for the year, consumers can expect mortgage borrowing to remain expensive. But it's doubtful that rates will climb at the same pace they did January through May.
2. Housing inventory will increase, but only slightly.
Currently, the number of available homes only represents a two-month supply. And it takes a four- to six-month supply of homes to create an equalized housing market. Home listings tend to pick up significantly in the Spring. But so far there's no indications that inventory levels are shooting upward.
3. Home prices will remain high
Because housing inventory isn't expected to pick up during the latter part of the year, home prices are likely to remain elevated.
The bottom line? Buyers, in most price categories, could have a tough road ahead. When buying, you need a trustworthy advisor who can help you navigate the difficult market. Contact us at Harnish Properties for best-in-class service that will get you to your dream home.
201 B Avenue, Suite 101
Downtown Lake Oswego