The Real Estate Market Forecast For The Balance of 2022

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We are now past the middle of the year and most of us have felt a slight change in the real estate market. For a while now we have been in a market that was greatly skewed favoring sellers with inventory levels hovering around just one month’s supply where a normal market falls somewhere closer to six months. This has some wondering if it may be a good time to purchase or sell a home. Here are some interesting points made by experts in the market.

The Mortgage Rate Forecast

Many buyers are feeling the pinch as mortgage rates have been climbing this year by over 2%. While nobody has a crystal ball to know exactly what is to come for where they are headed, we can look at some logic as to why they are rising now. Chief Financial Analyst of Bankrate states “Until inflation peaks, mortgage rates won’t either. Without improvement on the inflation front, we don’t know where the interest rate ceiling will be.” Rates do affect buying power so it is important to heed expert advice from professionals about your specific move.

Housing Supply Forecast

Good news has finally arrived for buyers now. Housing supply has been increasing this year due to more homeowners listing for sale but also because rising interest rates have softened buyer demand which in turn means more inventory. Realtor.com has recently changed their forecast for inventory projections for 2022 from 0.3% to 15% by year’s end. While there won’t be a quick increase of available homes, the steady growth in numbers should make buying a home easier than it has been in the past few years.

Housing Price Forecast

A few factors are at play with the future of home prices. Inflation has triggered interest rates to climb, but while that is calling for less buying power, there is still a strong amount of buyer demand out there. The same inflation factor drives renters who are experiencing rent increases to want to buy in order to have more control over monthly expenses with a fixed-rate mortgage. When you add all of this together experts predict that home prices will not see a decline, rather we will see more of a “foot off the gas” scenario. Deputy Chief Economist of CoreLogic states “The current home price growth rate is unsustainable, and higher mortgage rates coupled with more inventory will lead to slower home price growth but unlikely declines in home prices.”

In the end we are seeing more of a market correction rather than any sort of resemblance of a crash. The changes in the market are pushing conditions towards more of a balanced market that favors both sellers and buyers.

Beth Dickerson

Boston, MA

Primary phone
(617) 510-8565
Email
[email protected]
Address
277 Dartmouth St. , 2nd Floor,
Boston, MA 02116

About The Author

One of Boston’s most reputable real estate brokers, Beth Dickerson has achieved more than $2 billion in sales and thousands of successful real estate transactions over her nearly thirty-year tenure. Beth has received national acclaim from the real estate industry and represents some of the most prestigious residents and properties across Massachusetts. Her enduring record as a top producer comes from the intuitive gift of sensing her clients’ needs. She has built a business that is referral-based at its core—a testament to her relationship-driven approach and penchant for exceeding expectations. It is this nuanced expertise that Beth leverages to guide many of her clients-turned-friends through some of the greatest milestones of their lives.

Beth was the proprietor of her own real estate company before joining the residential division of R. M. Bradley in 1993, where she was a top producer for more than a decade. In 2003, she founded her own boutique real estate firm, Dickerson Real Estate, before merging with Gibson Sotheby’s International Realty in 2007. Today, Beth attributes her success to her comprehensive marketing and advertising strategies, exclusive contact network, and unparalleled insight into neighborhoods like Back Bay, Beacon Hill, the South End and Waterfront. With an understanding that no two clients are alike, she works with clients in all phases of life—from first-time buyers to luxury developers, seasoned sellers and beyond. Beth offers clients the resources to aggressively market their property locally, nationally and globally, and her attention to detail, drive and enthusiasm are unmatched.

Beth has appeared in prestigious media outlets including The Wall Street Journal, Mansion Global, The Boston Globe, and Boston magazine, and was prominently featured as Greater Boston’s real estate expert on WCVB Chronicle in 2020. She has had the honor of serving as President of the Downtown Council of the Greater Boston Real Estate Board. For over ten years, she has been a Co-Chair and Committee Member for the Massachusetts General Pediatric Hospital for Children’s Storybook Ball. She serves as a Board Member of the Community Music Center of Boston and a member for the Perkins School for the Blind, Emerald Necklace Park Conservancy, Justine Liff Luncheon, Youth Villages and the Boys & Girls Club of Boston, among dozens of other organizations throughout the Boston area.

A long-time resident of Boston’s Back Bay, Beth was an active member of the community as she raised her two children: she served as treasurer of the Clarendon Street Playground and was an avid supporter of the Hill House Community Center.