Redfin released its top 10 predictions for 2022 that looks at home prices, inventory, rents, and rates…(Redfin)
- Mortgage rates. Rates are currently sitting at around 3.00% and Redfin predicts a 50 basis point increase by the end of next year. “We expect 30-year-fixed mortgage rates to rise slowly from around 3% to around 3.6% by the end of 2022, thanks to the pandemic subsiding and lingering inflation.”
- Listings increase. Inventory will get quite the boast in 2022, but unfortunately it still won’t be enough to match the continued demand in the next year. “In 2022, new listings will surpass the 2018 high of 7.6 million homes, setting a new record going back to at least 2012…but we anticipate the market will remain undersupplied. Entry-level home supply in particular will remain extremely constrained.”
- Rents continue to rise. Double-digit rent growth will come to an end, but Redfin believes rent will outpace home price growth in the year. “Rents will increase 7% by the end of 2022, more than double the predicted year-over-year growth in home prices of 3%” because as The forbearance comes to end many homeowners will decide to sell and rent instead.
Redfin also predicts migration patterns that will see people move to areas that are more affordable and are more aligned with people’s politics.