What the Experts Are Saying
When we look at the numbers for 2022, it's easy to get discouraged—especially when we compare them to last year. However, it's important to remember that last year was an anomaly and not the new normal.
Here's why you shouldn't compare 2020, 2021 to 2022.
2020 & 2021 should not be used as a benchmark for future years. Instead, we should be looking at 2019's numbers as a more accurate representation of what we can expect going forward. And when we do that, things don't look nearly as bad. " Assuming a fairly conservative 5.15 million existing home sales in 2022, the comparison to last year is a sobering 16 percent drop."
What This Means for You
It's important to keep in mind that there are many factors at play when it comes to the real estate market. For example, Job security is a major factor that can impact whether people feel comfortable buying a home. And right now, there is still a lot of uncertainty surrounding job security—particularly in industries that have been hit hard by the pandemic, such as hospitality and tourism.
Additionally, mortgage rates play a big role in the real estate market. The housing market was booming last year because of historically low mortgage rates and many people were buying homes sight unseen because they were afraid of being priced out of the market. Low mortgage rates make buying a home more affordable and can help spur demand. However, mortgage rates are currently on the rise and are expected to continue increasing throughout the year. This could put some people off from buying a home or cause them to reconsider their budget. They're taking their time to find the perfect place, instead of just rushing into something because they're afraid of being priced out of the market. It's important to keep in mind when it comes to forecasting the real estate market for 2023. A lot can change between now and then—for better or for worse. So while it's helpful to stay up-to-date on market trends and forecasts, it's also important not to get too bogged down in the details. After all, anything can happen between now and next year!
While it may be tempting to compare past real estate market predictions, it's important to keep things in perspective. 2020 and 2021 were an anomaly and not representative of what we can expect going forward. Additionally, there are many factors at play that can impact the real estate market—such as job security and mortgage rates—so if you’re ready to buy or sell real estate, get with a local Realtor and lender today.