For almost the past two years, real estate professionals have been riding the housing boom to record sales and transaction volume. As home prices reach astronomical levels, some experts, agents and economists have warned of another housing crash that could rival the Great Recession.

However, here are five insights that signal a solid 2022 is ahead.

A housing crash isn't on the horizon:

Controls around subprime lending, low mortgage rates and robust demand from qualified buyers will stave off a collapse.

Mortgage rate hikes will be manageable

More hikes are on the way, with the Federal Reserve possibly raising mortgage rates up to 3.7 percent. Although that’s well above the rock-bottom rates seen in 2020, most buyers will still benefit.

First-time buyers may get some needed help
While financially secure buyers will be able to expertly navigate rising home prices and mortgage rates, first-time buyers will have a harder time as they tend to have lower incomes and struggle with saving a sizable down payment.
Although the Fed is unlikely to give them a break by reducing mortgage rates, lawmakers are taking legislative measures to bolster their down payments.

An inventory boost is coming

We have this mortgage forbearance program that is winding down. So it’s inevitable that some people will be forced to sell their homes and we will get more inventory. The boost in inventory could lead to cooling home price growth, with 70 percent of NAR members projecting home prices will stabilize in their markets in 2022.

Don’t worry too much about inflation

Despite inflation, real estate is still a safe bet. Decade after decade, you see that home values are generally a good hedge against inflation. 

                                    HAPPY THANKSGIVING!!!

Contact us at (480) 225- 2234 to get preapproved for mortgage while you look for the property of your choice. We can get you the best rates available and also discuss the loan choices that best meets your needs.