A Cooling Market Means More Options for House Hunters

The housing market is recording more modest growth in mid-2022 than it has over the last two record-breaking years, and that slowdown could provide more opportunities for buyers who can still afford home purchases.

Mortgage rates are expected to reach 5.5% by year-end, while Realtor.com predicts that home price growth will rise by another 6.6% in 2022, another blow to housing affordability that is already causing home sales to slow across the U.S., Realtor.com reports. A slowing sales pace combined with a larger share of sellers will lead to more supply for buyers still actively searching for homes in 2022.

Home sales slow, shifting our original 2022 growth expectations to a decline of 6.7%. While we now forecast a notable step down from 2021, home sales on par with these projections would mean that 2022 sales are the 2nd highest tally since 2007, trailing only 2021.

The number of homes for sale grows more than originally projected. The growth is driven by a combination of more sellers and a slowing home sales pace.

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