Predicting one of the best housing markets for 2022

The new year brings hope to home buyers

Interest rates, which fell to historic lows in 2020, fueled insatiable home buying demand and the hectic market that consumers are currently facing.

This has resulted in unprecedented price growth and dwindling affordability across the country.

But conditions for homebuyers should improve in 2022. predicts that increases in value could weaken in several real estate markets and sales may decline.

These metropolitan areas should be more accessible to first-time home buyers than what they've gotten used to in the last year.

Check your eligibility to buy a home. Start here (13.12.2021)

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Where home sales cool in 2022

The pandemic changed the trends in home sales as the increase in distant flexibility allowed many borrowers to seek where their dollars would go.

"Home sales are expected to decline in 2022 in some of the country's largest and most expensive metropolitan areas," said chief economist Danielle Hale.

Home buying in the US is set to remain strong in 2022, with sales expected to grow 6.6% year over year. However, 16 of the 100 most populous metropolitan areas are planning declining sales from 2021 to 2022, with some declines coming from normally hotter markets.

Cities on both coasts account for the majority of the largest expected declines.

metroExpected annual change in salesCape Coral, Florida – 5.60% San Francisco – 5.20% Bakersfield, California – 4.20% San Jose, California – 4.00% Honolulu – 3.90% New York – 3.00% Hartford, Conn. – 2.90% Chicago – 2.60% Baltimore – 2.40% Oxnard, Calif. -2.20%

Where home prices are falling

After a year of record-breaking home appreciation, the rate of growth should return to earth. data shows that total annual sales prices rose about 12% in 2021 and predicts an average increase of closer to 3% in 2022. While buyers shouldn't expect bargains, 18 of the top 100 cities are forecasting price growth below the national average.

Honolulu and two Connecticut metros top the list with the slowest expected rise in home prices for the next year:

metroEstimated annual price changeHonolulu 0.20% Hartford, Conn. 0.70% New Haven, Conn. 1.00% Scranton, Pa. 1.10% Baton Rouge, La. 1.50% Nordhafen, Fla. 1.70% St. Louis 1.70% Tulsa, Oklahoma 1.80% Chicago1.90% New York 2.30%

Where competition and values ​​heat up

On the flip side, booming job markets – especially in the tech space – and teleworkers escapes from the usually busier, cramped places, are fueling the hottest cities expected in 2022.

"With a thriving local economy, low unemployment rates, easy access to nature and relatively affordable housing, many of the top markets offer both the quality of life in the small town and job security in the big city," said Hale.

Salt Lake City and Boise, Idaho top the list of projected combined annual changes in home sales and price growth in 2022.

metroEstimated combined annual sales and price changeExpected annual change in salesEstimated annual price changeSalt Lake City 23.70% 15.20% 8.50% Boise, Idaho 20.80% 12.90% 7.90% Spokane, Wash. 20.50% 12.80% 7.70% Indianapolis 20.30% 14, 80% 5.50% Columbus, Ohio 20.00% 13.70% 6.30% Providence, RI 17.60% 8.10% 9.50% Greenville, SC17.10% 11.40% 5.70% Seattle17.10% 9.60% 7.50% Worcester, Mass. 16.60% 8.40% 8.20% Tampa, Fla. 16.40% 9.60% 6.80%

What are the mortgage rates today?

While the economy continues to recover, expects mortgage rates to rise to 3.6% by the end of 2022. Meanwhile, uncertainty caused by the Covid-19 variants is clouding developments.

Historically, today's interest rates are beneficial to most borrowers and potential homeowners.

Check your borrower's eligibility and current interest rates to see if you are ready to buy and which type of loan is best for you.

Show me today's prices (December 13, 2021)

The information contained on The Mortgage Reports website is for informational purposes only and is not intended to be an advertisement for the products offered by Full Beaker. The views and opinions expressed here are those of the author and do not reflect the policies or position of Full Beaker, its officers, parents or affiliates.

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