Housing costs are up a staggering 50% from a year ago, and the latest home sales data reveals that some buyers are taking a step back from home purchases as a result. Housing inventory is expected to see double-digit year-over-year growth in 2022, especially as demand continues to decelerate throughout the summer, Forbes reports.
Though softening competition and a resurgence of housing supply may initially seem optimistic for buyers long delayed by a lack of affordability, prices will continue to rise throughout much of the summer, making fall a better time to buy.
Higher costs will continue to challenge 2022 buyers, as mortgage rates have already far surpassed Realtor.com’s earlier prediction of 3.6%. Home sale price growth year-over-year is expected to more than double its originally forecasted pace (+6.6% vs. 2.9%). At the same time, Realtor.com’s updated projection for year-end 2022 mortgage rates (5.5%) anticipates that rates have largely adjusted for the bulk of expected 2022 Fed hikes.
Advertisement
Related Stories
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable
Market Data + Trends
10 States Where Home Insurance Rates Have Risen the Most
Responding to the increasing number of natural disasters, insurers are hiking prices, with some states bearing the brunt more than others
