Predictions for 2022 US housing market 

A lot has changed in the US housing market in the past couple of years, and 2022 is expected to sustain this trend as the pandemic lingers and the digital movement continues to pick up steam.

HomeLight’s End of the Year Report for 2021 made bold predictions for 2022.

First, buyers would include contingencies again to get their offers accepted. In submitting offers without any contingencies, buyers could find themselves stuck paying tens or hundreds of thousands more than a house was worth. They could be stuck with a house that had extensive wood rot or a termite problem. They could be stuck with two mortgages because they couldn’t sell their house before closing on the new one.

For example, realtors in Wakefield, Pennsylvania are reporting buyers are putting contingencies back into their offers because they realize what’s at stake and they don’t want to be taken advantage of.

Second, bidding wars may be a thing of the past. Agents report that as more houses enter the market, sellers can expect fewer offers. For the seller, that means they may not be able to hold out for an offer they can’t refuse and may have to accept whatever comes their way.

Third, more units will enter the market.  While inventory may still be unable to meet demand, real estate agents predict that as people feel more confident that the public health crisis is under control, folks will be putting their houses on the market. On the other hand, real estate agents are concerned that there may be a surge of foreclosed houses on the market once the full effects of the revocation of the foreclosure moratorium take hold.

Fourth, house prices may decline.  Housing prices were high throughout the past two years, but nearly 50 percent believe that prices will be on the decline in 2022. If you want to buy a house, keep an eye on housing prices because you could save yourself tens of thousands of dollars.

Fifth, down payment may come from different sources.  About 46 percent of real estate agents say buyers would likely to tap into whatever savings they set aside as a result of pandemic-related frugalness. Meanwhile, 45 percent believe that buyers who have a wealthy family member will turn to them for help and 37 percent predict that buyers will cash in their stock gains to come up with a good down payment.