5 Trends That Will Affect Buying or Selling a House in 2022

Five clear trends are emerging that will help homeowners decide if they want to engage in the real estate market this year after the median U.S. home price hit an all-time high of $404,700 in the third quarter of 2021.  

It was an increase of almost 20% from the same period in 2020 per the U.S. Department of Housing and Urban Development. 

Whether you're contemplating buying your first home, or are a real estate veteran, here are five real estate trends you need to watch in 2022. 

Mortgage Rates Will Continue Rising

After hitting an all-time low of 2.65% in January of 2021, mortgage rates have been on the rise. At the end of 2021, the average 30-year fixed-rate mortgage stood at 3.05%, based on data from Freddie Mac. 

Redfin's chief economist, Daryl Fairweather, predicts mortgage rates to rise to 3.6% by the end of 2022. While rising rates can be scary, keep in mind that rates are still at historically low levels. Before the Great Recession of 2008, mortgage rates never fell below 5%. 

Buyer Demand and Competition Will Decline

In 2021, an unprecedented surge in buyer demand resulted partly from a lack of inventory, work-from-home trends, and supply chain constraints limiting new construction.