Some Real Estate Trends to Look for in 2022

1. Some Real Estate Trends to Look for in 2022! This year has been anything but ordinary for real estate investments. In response to the COVID- 19 pandemic slowdown, the Federal Reserve has cut interest rates below historic lows, which caused mortgage companies to feel this tailwind. Customers responded by refinancing their mortgages at a record pace. Last month alone, we saw over 6 million Americans do just that! Here are some intelligent trends to keep an eye on in 2022: Origination volume to decline: The mortgage lending industry isn't fans of rate hikes. They ultimately lead to a slump in business as people buy houses or refinance their current homes. This locks them into low rates for an extended period until those introductory periods are over and new ones begin. When rates start to rise, mortgage lending slows, projected for 2022, which will undoubtedly hurt lenders. Demand for homes to outpace supply: The housing market shows no signs of slowing down. Despite increasing interest rates and declining mortgage origination, demand for homes remains robust. The low supply has led to an imbalance between what's available now and past years. This may result in a multiyear boom period where construction companies can expect lucrative business prospects. Home prices to continue to rise at a slower pace: Experts and predictors agree that prices will continue increasing in 2021. Experts at Goldman Sachs expect a 16% price hike over the next year, while Zillow's expert prediction is 13%. Are you holding plans for investments? It’s time to jump into action now! For more on Upper East Side Condominium, click here!