As 2022 looms, many buyers, sellers, and agents are looking ahead to what the Maryland real estate market is likely to do. After 18 months of rising home prices and lower-than-average Maryland mortgages, this could be a year of stabilizing, or it could be a year of continued high demand. Here are some trends that are likely to come in real estate in 2022.
Demand Remains High but Less Pressing
Demand for new homes is going to remain high. In 2022, many Maryland real estate experts believe investors will start making a big comeback, especially as eviction moratoriums end. This change could increase demand for any bargain-priced properties on the market. However, demand may slow compared to the 2020 and 2021 surges. Though not quite as fervent, it is expected that the demand for homes will remain high in 2022.
Slight Improvement in Housing Inventory
Low inventory has been one of the causes for home prices rising during 2020/2021. There haven’t been enough homes for sale in Maryland to keep up with the number of interested buyers. This is likely to shift just a little in 2022. While there will still be more demand than available homes, there will also likely be more homes hitting the market, especially if investors decide to sell some of their rentals to capitalize on the high prices of the current market. If this happens, it will be a key factor in stabilizing the demand and price increases.
Maryland Mortgages May See Rates Increase
As inflation increases across the nation, some predict a possible increase in mortgage rates in 2022. Those who have been putting off purchasing a home should consider beginning the prequalification process now and begin their new home search.
A Crash is Unlikely
A real estate crash is something experts have warned about after the bubble, but this is not likely. What happened in 2008 is not expected to occur in Maryland in 2022. Remember, home price appreciation is a normal part of real estate, and while the appreciation has been swift in recent years, it is, in part, making up for the 2008 crash, so it is not inflated as much as it may appear. The current appreciation comes from supply and demand, which is far more healthy for the market as a whole.
As you prepare to become part of the housing market in 2022, the first step is to Pre-Qualify with Drew Gilmartin from First Home Mortgage. Doing so ensures that you will be prepared to be a competitive player in the unique housing market that 2022 will bring.