The housing experts say the market is “normalizing.” But what does that mean for the Palm Beaches? Will home prices in Palm Beach County and rents finally come down? Will more homes go up for sale? And what does the year ahead have in store for the real estate market?
“The nation’s housing market, after a wild surge that sent home prices up over 30 percent in some cities in 2021, will be less intense next year”, according to Lawrence Yun, chief economist of the National Association of Realtors (NAR).
The NAR 2022 housing forecast anticipates the market will continue slowing down from the frenzy seen in the spring when prices shot up to new heights. However, prices will stay high, inventory will remain tight, and mortgage rates will rise. Other factors play into the 2022 housing forecast:
Yun predicts mortgage rates will hit 3.7 percent in 2022 for 30-year, fixed-rate mortgages.
The shortage of homes for sale, which has been more than a decade in the making, will keep home prices on the higher end.
Attractively priced homes in decent shape are expected to continue going under contract quickly.
Sales will also continue to climb, hitting a 16-year high as they are anticipated to go up by 6.6%. That is partly because technology has sped up the homebuying process. Also, buyers are jumping on whatever comes up for sale in record time before the property is snapped up by another eager buyer.
Homes are selling so much faster than they have in any previous years because of internet technology accelerating the home buying process.
The popularity of the suburbs is also likely to endure as many continue working remotely. The “burbs” emerged as the places to be during the pandemic as buyers could secure more square footage and bigger yards for less money than in the bigger cities.
If you would like to discuss the 2022 Real Estate Housing Forecast for Palm Beach and Martin County with a professional at Waterfront Properties and Club Communities and get a clear understanding of the market in the area. For more information, please call 561-746-7272.
