What Does the Rest of the Year Hold for the Housing Market?

If you’re considering buying or selling a house, you’re at an exciting decision point. And anytime you make a big decision like that, you should always consider timing. So, what does this year’s outlook hold for the housing market? Here’s what experts have to say.

The Number of Homes Available for Sale Is Likely To Grow

There are early signs that the housing inventory is growing, and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com:

“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”

  • As a buyer, having more options is welcome news. Remember, the housing supply is still low, so be ready to act fast and offer your best upfront.
  • As a seller, your house may soon face more competition when other sellers list their homes in the Chicagoland area and surrounding suburbs. But the good news is if you’re also buying your next home, having more options should make that move-up process easier.

Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures

Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First American, says:

“… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.” 

  • As a buyer, work with trusted real estate professionals, including your lender, to learn how rising mortgage rate environments impact your purchasing power. It may make sense to buy now before it costs more if you’re ready.
  • As a seller, rising mortgage rates motivate some homeowners to move up sooner rather than later. If you plan to buy your next home, talk to a trusted real estate advisor to decide how to time your move.

Home Prices Are Projected To Continue To Climb

Home prices are forecast to keep appreciating because fewer homes are still sold than buyers. Experts agree that the pace of that appreciation should moderate – but home prices won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.” 

  • As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that once you buy a home, it will likely grow in value. That makes it historically a good investment and a strong hedge against inflation.
  • As a seller, price appreciation is great news for the value of your home in Chicago, Illinois, and the USA. Again, lean on a professional to balance the best conditions for selling your house and buying your next one.

Bottom Line

Whether you’re a home buyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. Let’s connect to discuss your goals and what lies ahead so you can pick the best time to make a move.