Thanks to all your continued support, referrals, and reviews we "smashed" all of our 2021 goals:
147 homes sold in 2 years with over 60 million in closed sales
Top 1% agents in all of Kane County
#1 Agents Baird & Warner Fox Valley
Top 1/% of all agents companywide
Here is an overview of the possible factors that will influence and dictate market conditions in 2022.
Prices are NOT expected to drop due to the limited supply of homes, the higher demand for housing, and the low mortgage rates---All combined, it will continue to be a SELLER's market. NAR (National Association of Realtors) forecast calls for median price gains by the end of 2022 between 5% and 7%---Also anticipates that annual median home prices will increase by 5.7% in 2022. According to Danielle Hale, Realtor.com chief economist, "Expect a whirlwind 2022 with home sales expected to increase another 6.6% and homes prices to rise another 2.9% on top of 2021 highs." All indicators point to rising home values in 2022, but definitely at a slower pace.
And while prices are not forecasted to decline, price growth through 2023 will be slower than average according to Fannie Mae. Year-over-year home inflation will drop to 4.4% in the second quarter of 2023 and end the year at 2.9%. The pandemic will raise the floor for U. S. housing prices. Lawrence Yun (chief economist for NAR) expects a 30-year fixed mortgage to be 3.5% as the Fed raises interest rates to control inflation, but noted this lower than the pre-pandemic rate of 4%.
Remote work, low mortgage rates, shortage of building material, and wealth inequality have come together to create a historic year for real estate. It should be more balanced in 2022--- One-third of the homes sold in 2021 were OVER the asking price. All of the above being said, no one really knows what will happen...who predicated the pandemic and the result on the housing market? We can definitely forecast that the next 6 months will be very strong for sellers as buyers continue to combat low inventory and rising mortgage rates. We are here to help in any way possible...if you or someone you know is thinking of buying or selling, we would love to help you!
Eric & Lynn Purcell