According to Realtor.com’s 2022 housing forecast, released on Wednesday, demand from first-time buyers will outstrip the recovery of stocks in the domestic real estate market as Americans will have a better chance of finding a home but face a competitive seller’s market.

The year will also present a mix of housing affordability challenges and opportunities, as listing prices, rents and mortgage rates are all set to rise, according to the site.

Realtor.com predicts that home sales in 2022 will hit their highest level in 16 years, increasing 6.6% year-on-year. Buyers are expected to remain active and stocks for sale should start to recover from recent large declines. The real estate agent projects record listing prices, quick sales and limited home-for-sale options as existing home listings remain below pre-COVID levels. The new-build supply gap of 5.2 million new homes could also narrow as builders continue to ramp up production, which is expected to grow 5% year-on-year.

Whether the pandemic has delayed plans or created new opportunities to take a step, Americans are set for a hectic year of home buying in 2022. With more sellers expected to enter the market as buyer competition remains fierce , we expect strong home sales growth at a more sustainable pace than in 2021, “Danielle Hale, chief economist at Realtor.com, said in a statement.

Affordability will be more of a challenge as interest rates and prices rise, but remote working can broaden the search areas and allow young buyers to find their first home sooner than they do. wouldn’t have done it otherwise, “Hale continued. “And with over 45 million millennials in the 26-35 age bracket for the first time by 2022, we expect the market to remain competitive. “

There is expected to be a 4.7% increase in sales in the Austin Metro real estate market, with prices expected to rise 3%. Dallas-Fort Worth is expected to see 8.3% increase in sales with prices up 4%, El Paso is expected to increase 10.6% in sales with prices rising 5.1% and the Houston metropolitan area is expected to increase 2.6 percent in sales and 2.4 percent in prices. McAllen-Mission is expected to grow 5.9% in sales and 5.1% in prices and San Antonio is expected to see a 5.1% increase in sales and 3.5% in prices.

According to Realtor.com, potential sellers increasingly plan to enter the market this winter, although affordability is a growing consideration as mortgage rates and home prices rise. A growing economy, a strong job market and flexibility in the workplace should allow first-time buyers to buy a home on a budget.


Buying a home could also become the more affordable option, Realtor.com said, with rents expected to exceed the prices of homes for sale in 2022. Rents are expected to rise 7.1% and prices are expected to rise. of homes by 2.9% year-on-year. The homeownership rate is expected to increase slightly in 2022 to 65.8%.

According to Realtor, data from a recent survey shows that millennials make up more than half (53%) of potential buyers who plan to buy their first home in the next year. This first-time buyer demand is expected to surpass the inventory of new and existing homes. Homebuyers will face stiff competition over the next three years for real estate projects, as millennials search for first-time homes Gen Z increasingly enters the housing market and more and more. Older Americans are looking to downsize.

According to Realtor.com, data from a recent survey also shows that 19% of potential sellers are considering moving because they no longer need to live near the office, up from just 6% in the spring, according to Realtor.com.

Realtor.com predicts that suburbs will continue to be more popular than large urban subways as homebuyers seek relatively affordable and larger homes. The price of a typical 2,000-square-foot single-family home increased at a double-digit annual rate in October (16.7%), meaning buyers may have to sacrifice additional space to afford a home. house in the area of ​​their choice.

“Our housing forecast suggests that we expect another year of dynamic activity, but 2022 will also come with growing pains as we navigate the path from the peak of the pandemic to a new normal,” George Ratiu, director of the ‘economy research for Realtor.com, said in a statement. “With most real estate markets expected to be competitive in 2022, it’s important to remember that you are in control of your real estate journey.

“The bottom line for buyers is making sure you are comfortable with your schedule and budget – and especially for younger buyers who are making this massive financial decision for the first time,” Ratiu continued. “For sellers, consider the conditions in your local market as well as the likely increase in the number of homes for sale, and price yours competitively.”