Housing costs are up a staggering 50% from a year ago, and the latest home sales data reveals that some buyers are taking a step back from home purchases as a result. Housing inventory is expected to see double-digit year-over-year growth in 2022, especially as demand continues to decelerate throughout the summer, Forbes reports.
Though softening competition and a resurgence of housing supply may initially seem optimistic for buyers long delayed by a lack of affordability, prices will continue to rise throughout much of the summer, making fall a better time to buy.
Higher costs will continue to challenge 2022 buyers, as mortgage rates have already far surpassed Realtor.com’s earlier prediction of 3.6%. Home sale price growth year-over-year is expected to more than double its originally forecasted pace (+6.6% vs. 2.9%). At the same time, Realtor.com’s updated projection for year-end 2022 mortgage rates (5.5%) anticipates that rates have largely adjusted for the bulk of expected 2022 Fed hikes.
