Housing Market Insights For 2022
Yes we are at the half way mark of 2021 already!!! Yes interest rates are still low, inventory is coming up and inflation is on the rise!!
So what is on the horizon as we move into the second half of 2021 and peak into 2022??
My Market Musings for 2022 …
1- Home Prices Will Peak in 2022 … The driver I see will be Forbearance ending in 2021. This will bring new inventory to the market. With my prediction of interest rate increases, there will be a down pressure on home prices.
2- Eviction Moratorium will end in 2021 … Nationwide this impacts ten to fifteen million people. Landlords will be able to then collect back rent if the renters can pay. Additionally, there will be a court flooding for evictions nationwide. Some of these properties will come to the market as sales to help the landlord get back their footing after being without rent while paying a mortgage for the past year. Other landlords who were able to maintain financially during the moratorium, will fix the property and re-rent to continue the cash flow for their portfolio.- Ending of Forbearance … This has been extended and extended but it won’t continue into 2022. The impact of the ending of the program will depend on how behind homeowners are on their payments and whether the lender is willing to work with the homeowner. Two million homeowners nationwide will have to show new sources of income since filing for the program or new or reinstated jobs.
4- Higher Interest Rates … Government officials have already hinted that we might be seeing higher rates to push down inflation. The Federal Reserve policy is that when inflation is high they raise rates to reel it in. With an increase in rates will come a tightening on rents and lower purchase affordability. If you have a variable rate now, get into a fixed rate pronto!
Reach out for an evaluation of your personal situation. 760-912-8905 or 760-912-8904