Coming off several years of unexpected and historically significant activity in the housing market, what can we expect in 2022? First American Data and Analytics’ 2022 Housing Market Outlook analyzed what is on the horizon with a review of the macroeconomic factors and specific residential real estate trends that will drive the housing market this year.
In this webinar, Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, presented data detailing the overarching economic drivers affecting the housing market, demographic and geographic homebuying trends, supply and demand imbalances, affordability and the effect of a rising rate environment, among other data analytics.
Highlights of the webinar included:
- Housing demand is being driven by millennials as they age into lifestyle choices that are highly correlated to homebuying – getting married and having children.
- Housing affordability is declining and will continue its decent in 2022 as home prices remain positive throughout the year, even though they moderate some.
- Despite affordability tightening, a strong economy will give people, especially first-time homebuyers, confidence to buy even with more expensive home prices.
- 2021 saw the strongest purchase demand in a decade, and that demand will remain strong in 2022, buoyed by a strong economy and income growth.
- It’s not a foregone conclusion that rising rates will reduce sales since rates, even though they are expected to rise, are still historically low.
- Demand for housing continues to outpace supply, and the housing shortage is here to stay, perhaps well into 2023. There remains a record-low share of inventory with 120 of every 10,000 homes listed for sale.
To learn about these highlights in more detail, you can watch the 30-minute webinar and download the full presentation by clicking on the button below.