It’s been a crazy year for real estate with bidding wars, record home prices and historically low inventory, but that may all come to an end in 2022, according to NAR Chief Economist Lawrence Yun.
Yun, who spoke at the National Association of Realtors 2021 Realtors Conference & Expo earlier this month, said market conditions are strong, and sales are the best they’ve been in 15 years. He went on to say this success will continue, but next year’s home sales will likely not top 2021’s.
While sales may decline, Yun says he expects home sales to continue to outpace pre-pandemic levels, as he anticipates an increase in housing inventory from new construction and the end of mortgage-forbearance programs.
What he doesn’t know, he said, is how work-from-home opportunities will continue to fuel market changes. That’s something, he said, that those in the industry should keep an eye on.
“We are only in the first innings of work-from-home options,” Yun said in a press release. “People have not fully digested the work-from-home-flexibility model yet in determining home size and locational choice.”
Yun also predicts mortgage rates to increase from the current 3% to 3.7% in the coming months.