Maybe you are a potential first-time homeowner, wondering if 2022 is the year to enter the housing market. Or maybe you are a homeowner wondering if 2022 is the year to sell your home and upgrade. Wherever you are in the homeowning process, you should understand the housing market landscape for 2022 before entering it.

Trends you can expect to see in the housing market in 2022:

Home Prices Set Record High

The existing home median sales price appreciation is anticipated to rise 2.9% in 2022, according to Realtor.com® Forecast. This will mark a decade-long streak of year-over-year increases. The good news is the appreciation of home prices will grow at a more moderate rate in 2022 compared to its predecessor. Affordability barriers will prevent prices from rising at the rate they did in 2021, but you can still expect to see an increase in home prices.

Rent Outpaces Home Prices

While rising home prices and mortgage rates may deter prospective homebuyers, the rise in rental rates is an important factor to consider when weighing the cost of continuing to rent with the expenses of buying and owning a home. Renters can expect to see an increase in rental rates in 2022. Rent growth is anticipated to increase by 7.1% this year, according to Realtor.com®. As home prices increase, a large percentage of the population will continue to rent as a result.

Mortgage Rates on the Rise

Everyone wants to know if mortgage rates will go down in 2022. Unfortunately, mortgage rates are expected to rise moderately as the Federal Reserve works to keep them from climbing at a fast rate. Greg McBride, the chief financial analyst of Bankrate expects mortgage rates to climb to 3.75% in 2022 and fall back to 3.5% by the end of the year.

Competitive Seller’s Market

Overall, the housing market of 2022 will be a competitive seller’s market-facing the barriers of low inventory and rising mortgage rates and sale prices. However, experts anticipate a more moderately-paced market by comparison with the previous years and hopefully less of an inventory shortage.

Contact a Loan Specialist

Are you ready to enter the housing market? Looking to get pre-qualified? The best way to determine your eligibility is to speak with a loan specialist. The loan specialists at VeteransLoans.com will walk you through the pre-qualification and loan application process. Call (888) 232-1428 to speak with a loan specialist today!

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