The Sunday Globe has made their predictions for 2022. These are the forecasts The Robin Allen Group believes will influence your local real estate market. As stated by Fairweather, Redfins Chief economist, “I think that there’ll be a rush to buy homes at the beginning of the year before mortgage rates go up”.
Experts are predicting a more balanced housing market in 2022. Expect more modest price appreciation of less than 5% compared to double-digit gains we’ve had. Though, the Boston area with its booming health sciences industry, could still see price gains that top 10%.
Economists are expecting mortgage rates to inch upward next year. “Once mortgage rates do start to bite, demand will slow down and in turn can encourage more people to sell. As homeowners realize the intense seller’s market won’t last forever …. that can get some people off the sidelines”, Fairweather. Also, homeowners who have put off selling or relocating due to the pandemic also could add some much-needed inventory to housing market. In the Greater Boston area, we have had an inventory shortage for years before Covid. Though the pandemic persists, people at least have a better grip on what to expect from it now and are once again confident enough in their future plans to make lifestyle moves.
As we have seen a strong push in the past year to the suburbs, this trend should continue in 2022. However, for Boston expect both city centers and the condo market to do well in 2022, noting that there has been a push for Boston sales these past few months.
Meanwhile, an increase in homes for sale should give buyers more options and further rein in price increases. “It will be easier for buyers to get an offer accepted,’’ Fairweather said. “It won’t be cheaper for them — prices aren’t going to go down, they’re still going to grow, albeit slowly. But they won’t have to worry so much about getting outbid by somebody who just has more cash or is willing to waive more inspections … the typical home buyer who wants to take their time and wants all the inspections done is going to have an easier time at it.’’
