Although we are only two weeks into the new year, we’ve started to see a multitude of experts forecasting what trends 2022 will bring.
This week, we've read through the expert opinions to bring you the details about what's in store for 2022’s housing industry.
1. Mortgage rates will rise
Mortgage interest rates dropped to historically low levels after the beginning of the COVID-19 pandemic, spurring on the hypercompetitive housing market that we’re still navigating today. According to a Bankrate.com article, fixed 30-year mortgages reached interest rates averaging less than 3 percent in early 2021.
But experts expect those interest rates to rise in 2022. Gay Cororaton, with the National Association of Realtors, states that “rates are expected to slightly move up, to an average of about 3.5 percent,” moderately increasing from their current levels.
2. Home prices will rise, but not as dramatically as last year
If you’ve been crossing your fingers that home prices would drop to a more affordable level in 2022, then you may be disappointed to learn that the average price of single family homes is expected to rise in the coming months.
Forbes.com believes that the demand for housing will continue to stay high unless certain factors start to slow things down, such as the COVID-19 pandemic, inflation, and wage stagnation. Additionally, Nicole Bachaud, an economist at Zillow, expects “to see prices rising at extremely high levels for the first few months of 2022 before beginning to taper off towards more normal levels.”
3. Continued changes in home buyer preferences
COVID-19 caused some significant changes in home buyer preferences in 2021, and, according Bankrate.com, it will continue to do so through 2022. For instance, if more and more homeowners have the opportunity to work from home, that means that an increasing number of families can afford to live in areas that may not be geographically close to their place of work.
Not only has the rise of work from home culture brought a change in geographical preferences, but it may also be causing open concept floor plans to fall out of favor. After all, as more couples, parents, and children work or learn from the safety of their own homes, household members are quickly realizing that open concept spaces may not be the best for keeping the noises of several Zoom meetings from clashing with each other.
4. Hispanic home buyers will become the largest group of new homeowners in 2022
Bankrate.com recently highlighted a study from the Urban Institute, which predicts that Hispanic households will become the largest group of new home buyers in the coming months, if not years. In fact, the study forecasts that as much of 70% of new U.S. home buyers in 2040 will be Hispanic.
Quoting Gary Acosta, CEO of the National Association of Hispanic Real Estate Professionals, the article asserts that, “There’s no question Latino homebuyers are going to be a major force this year and in the years to come.”
Buying a Home? TSAHC Can Help
With whatever industry trends that 2022 brings, TSAHC is here to help the residents of Texas. If you’re looking to buy a home in 2022, know that TSAHC has programs designed to help make down payments more affordable. To learn more about our down payment assistance programs or our Mortgage Credit Certificates, please click here.
If you’re a U.S. veteran, public school teacher, or a member of other heroic professions, check out our Homes for Texas Heroes program, which was specifically designed to honor individuals who spend their careers giving back to our community.
On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.