Princeton Town Topics – Let’s Talk Real Estate – February 2, 2022
WHAT TO EXPECT IN REAL ESTATE IN 2022
Home prices rose steadily throughout 2021, although prices began to level off by the end of the year. Overall, however, home values rose by 15% last year. Pandemic uncertainties and an extended sellers’ market kept prices elevated in many markets, including in the NY-NJ metro area. One of the key questions for 2022 is, will the market be more favorable to buyers? Here are some trends to watch that are expected to affect real estate markets and prices.
Interest rates remain near historic lows and although they are projected to increase, mortgage interest rates aren’t expected to jump significantly. Buyers should be prepared to have a mortgage pre-approval in hand when they decide it’s time to buy.
Nationwide, housing inventories remain low as demand for homes in the suburbs has not subsided. However, in New Jersey markets, inventories are beginning to open up a little more, giving buyers more opportunities to find properties in a wider area of locations.
The permanent shift to working from home will also continue to impact housing trends. Demand for more spacious homes remains strong as a result.
