2022 Housing Market Forecast
What is the Florida housing market expected to do in 2022?
Let’s see what the experts are saying and what the market is doing locally.
With the lack of inventory, we are relying on builders to build us more supply. Local builders are having to slow down the rate at which they write new contracts. Some builders are building spec homes, one is in particular is DR Horton and they seem to have a better timeline to completion. Either way, if you are buying new construction expect some delays due to materials.
What about foreclosures?
Let’s talk about mortgage rates
In 2021 they averaged 2.96%. In 2022 some experts are expecting a 30 year fixed rate to rise to 3.7% and others are predicting as high as 4.5% by the end of the year. Either way, the Fed did announce they will be increasing rates this year to combat inflation. I remember when I bought my house in 2006, I got a rate of 6.375 and if you talk to anyone who has bought homes in the past 40 years, they saw rates in the teens, so these rates are still historically low.
Real Estate is expected to drive the market in 2022 and if the rate increases are sustained then we should eventually expect some slowdown in the price increases, which would be a good thing as our economy continues to recover.
We will continue to see a sellers market for the foreseeable future and the Florida housing market will remain strong while others are starting to wain. However, it’s going to take a while to get back to a balanced market so you will not see home prices plummet anytime soon.