Goldman Sachs recently released their housing market forecast for 2022. In quick summary, they anticipate that home prices will continue to rise, though more modestly than we've seen in recent years, with a roughly 16% appreciation in value.
Low housing inventory, low interest rates and pressures on the supply chain for raw materials - lumber, materials, etc. - continues to be the reason for the appreciation in prices. As consumers, we've been seeing the effects of the supply chain issues in the form of longer delivery times for home goods, appliances, furniture, food items, and an increase in prices.
What this means for home buyers:
- It may not help you to wait to buy a home. If prices do increase by an average of 16%, buyers may find themselves priced out, unable to afford the mortgage loan and associated down payment.
- Rents are increasing too, and as such, it's more advantageous to purchase your home and begin to build equity than to continue paying rent.
What this means for home sellers:
- If you've been on the fence about selling, this may be the time to crunch some numbers and schedule the no-obligation home selling consultation with me!
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