Fall Housing Market Forecast
Q: Gerald, what do you expect will happen in the real estate market for the rest of 2022? Gail, Hoboken, NJ
A: Home sales have declined significantly this year already, particularly for homes selling for less than $400,000 as rising mortgage interest rates have made it more difficult for millennial 1st-time home buyers to qualify for homeownership. Construction costs have increased 20% since last year, labor costs continue to climb and the time required to complete a new construction project has doubled recently. I expect housing sales will continue to slow and home inventory will continue to climb at the end of this year. Although home inventory levels are much higher than they have been in the recent past, they are still very low historically, so I don’t expect home prices to fall in the final four months of 2022. Thanks for your question, Gail.
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