Currently Reading

Looking Ahead to Post-Pandemic Housing Inventory in 2022

Advertisement
Housing Markets

Looking Ahead to Post-Pandemic Housing Inventory in 2022

Will housing supply increase as the pandemic subsides, or is a greater deficit ahead in 2022?


December 28, 2021
construction inventory
Image: Stock.adobe.com

During the pandemic, housing inventory decreased sharply as potential sellers opted to keep their properties off the market and buyers were motivated by low mortgage rates. Thanks to high demand and low interest rates during each wave of the pandemic, home buying activity increased even as prices hit record highs.

Inventory in November was down 13.3% year-over-year from 2020 rates, according to Bill McBride in the CalculatedRisk Newsletter, and record low housing supply over the next several months will also lead to strong price gains ahead of likely another record-breaking year for the housing industry. 

Each new wave of the pandemic has driven down interest rates, and that has made home buying more affordable (even as prices increased sharply). Making the assumption that the pandemic will be mostly over by mid-2022 (due to a combination of vaccines and therapeutics), we can make a few general predictions:

1. Mortgage rates will increase in 2022 (from the current 3.25% for a 30-year fixed rate), and this will make house prices less affordable.  This should dampen some of the buying frenzy.

2. Sellers will be more willing to list their homes as the pandemic subsides, and price increases slow.

Read more

Related Stories

Builders

Homebuilders Keep a Steady Pace as the Market Cools

As mortgage rates quell heated competition and elevated buyer demand for existing homes, builders are finding ways to offer affordability to a more budget-conscious consumer base

Environmental

Builders Race to Future-Proof New Residential Development Against Climate Change

New residential projects are employing resilient building techniques to withstand the intensifying effects of climate change in the decades to come

New-Construction Projects

Housing Completions Expected to Boost Supply in 2022

The housing market may be slowing down, but new construction projects are keeping a steady pace, experts say

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.