Home prices surged torecord-breaking highs.
Interest rates dropped to historic lows.
And, amongst it all, the new era of online home buying and selling took further root.
As such, the 2022 housing market will present challenges for new buyers looking to get a foothold.
For those looking to sell,new technologies like iBuyingwill continue to streamline and simplify real estate transactions.
Meanwhile, there are two new spectres on the scene:inflationand rising interest rates.
Of course, this creates a much more difficult situation for prospective homebuyers.
And that’s unlikely to change much in 2022.
And that – in addition to higher interest rates – will create considerable headwinds for buyers throughout 2022.
And further complicating the picture is a sustained labor shortage, particularly for skilled construction workers.
The Federal Reserve announced that it willwind down bond purchasing and look to raise interest ratesnext year.
And don’t forget about inflation!
That will almost certainly increase both the cost of home building materials and skilled labor.
And yet it’s not all doom and gloom.
Mortgage interest remains are still quite low.
Tech innovations reshape home buying
Digital lending has already impacted the way Americans shop for homes.
New construction may prove to be both moreenergy efficientand more durable in the face of extreme weather.
The stakes couldn’t be higher.
