Will the housing market continue its hot streak in 20-22? Industry experts say YES!
Here are 3 predictions that will continue to drive the housing market next year.
- Housing Demand will continue to be strong – one of the first things we look to when we are forecasting the strength of the housing market, is Days on Market – How fast are homes moving? In Lane County, in November, homes were on the market an average of 25 days. The mid-December snapshot showed an average of 74 days on market. A typical December would see a market time at 85-100 days. So, you can see the demand is staying elevated, which is an optimistic sign for next year.
- Low-inventory will continue to be an issue – A healthy real estate market is one that has 4-7 months of inventory. The latest stats in Lane County show we have 0.8 months… that’s right! Less than a month of inventory. With all the eager home buyers trying to capitalize on the low interest rates, the low inventory means it will remain a seller’s market as we head into 2022.
- Home prices will remain high – With housing demand high and inventory low, prices will remain high into next year. The average sales price in Lane County in November was $459,300, which is over 20% higher than the average sales price last year.
If interest rates start rising, and we start experiencing inflation or other economic challenges, this could have a cooling effect on the market. These variables aren’t in the data yet, but they’re looming. I will keep watching the data closely to spot any major shifts. Follow me on social, or sign up for my market reports to stay informed.
Did you know every home listed for sale with Berkshire Hathaway HomeServices Northwest Real Estate and Berkshire Hathaway HomeServices Real Estate Professionals is eligible to receive no-obligation home warranty coverage from American Home Shield or 2-10 Home Warranty the first six months the home is listed with our company?