Recently in HousingWire, Altos Research founder Mike Simonsen said there are three important predictions about the strength of the 2022 housing market. He asked whether the market will continue its streak of strong growth, or are will we finally see a slow down? In that vein he put out a “high-level forecast” for what to expect to see in 2022, based on the supply and demand signals seen in recent data. He also highlights which variables we should be watching for unexpected market shifts. Indeed…
“As we look towards 2022, all the leading indicators show tight inventory and strong demand keeping prices high — a strong seller’s market. If interest rates start rising, and we’re seeing inflation or other economic challenges, this could have a cooling effect on the market. These variables aren’t in the data yet, but they’re looming. We’ll want to keep watching the data closely to spot any major shifts.”
Here are the three predictions on the strength of the 2022 housing market:
- Demand will continue to be strong into 2022.
- Low inventory will continue to be a major issue.
- Home prices will remain high into 2022.