2022 should be a slightly easier year for buyers, but competition will remain a factor in the process.
According to the Realtor.com® 2022 Housing Forecast, listing prices, rents and mortgage rates are all expected to increase in the new year and there will be an influx of millennials looking to become first-time homebuyers. The report predicts existing home sales will grow 6.6% year over year, with inventory rising 0.3% and the existing home median sales price appreciation increasing 2.9% year over year. Meanwhile, rent growth is supposed to go up 7.1% year over year, while mortgage rates will grow to 3.3% on average and reach 3.6% by the end of 2022. Home sales are predicted to hit a 16-year high.
However, some relief may be on the way for buyers. The report suggested that new construction will supply around 5.2 million homes, adding much-needed inventory. Additionally, 19% of prospective sellers are looking to move because they want to downsize, an increase of 15% from the spring. As the demand for suburban, larger homes increases, this could offset additional price rises.
In Pennsylvania, the Allentown-Bethlehem-Easton market is predicted to see a 4% increase in sales year over year and a 4.3% jump in price year over year. In the Harrisburg-Carlisle area, sales are expected to go up 4.4% year over year, while prices will rise 3.5%. Meanwhile, in the Philadelphia area (which includes Camden, New Jersey and Wilmington, Delaware), sales are supposed to jump 4.7%, while prices will rise about 2.9%. In Pittsburgh, which is consistently applauded for its affordability, sales are expected to rise 8.5%, while prices will jump 3.5%. In Scranton-Wilkes-Barre-Hazleton, sales are predicted to rise 3.6%, while prices will only rise about 1.1%.