August Residential Real Estate Predictions
The real estate market has been active throughout the marketplace throughout the year of 2022. With mortgage rates rising and demand dropping, here is what you should expect in August of 2022 as described by leading economists covering the US housing market.
As home buying demand has cooled down in comparison to earlier this year, more and more homeowners are switching to renting as the economy takes a bit of a setback. With uncertainty looming in, home value skepticism is rising. Economists predict that rates will continue to rise — This is much to do with no new changes in the latest CPI report that inflation is slowing in any respect. As rates continue to rise so will mortgage rates, making home buying even less attractive. Due to this, home asking prices will as well continue to drop and home owners look to chase an exit and find a fair deal for homebuyers willing to take on a higher interest rate at a lower home value.
An increase in inventory is also expected, carrying on the trend in homes sitting on the market in past months. There will continue to be an imbalance in supply and demand as long as buyers continue to choose renting over buying due to high interest rates & home values staggering.
There is no substantial evidence proving that inflation has hit its peak and because of that there is no indicator as to whether mortgage rates will continue to rise or fall. The economic outlook through Q3 onward looks dreary for home values & those looking to sell their home for a profit.
This post is based on the opinion of writers at Real Estate Today