Here’s what I’m forecasting for the 2022 real estate market in New Jersey.
What will our real estate market look like in 2022? Here are three things I expect to see in the coming year:
1. Mortgage rates will increase above 3.5%. With a strong employment market, inflation, and a window in the pandemic, we expect interest rates to rise as high as 3.7% in 2022.
2. Price growth will come down to earth. With increased rates expected, a more expensive market will cause some homebuyers to delay their purchases. With people leaving the market, we expect home appreciation in the double digits to end.
3. New listing inventory will increase. In 2022, we expect new inventory to surpass last year’s numbers as the market continues to normalize and many homeowners list their homes while looking for a new one. Other homeowners will finally decide to cash out as price appreciation slows.
It appears that we’re headed for a balanced market with higher rates, increased inventory, and slower appreciation. If you have any questions about buying, selling, or real estate in general, don’t hesitate to reach out via phone or email. We look forward to hearing from you.