After a tumultuous summer for real estate, autumn is nearly here. As of mid-September, the benchmark 30-year fixed-rate mortgage average is hovering just north of 6 percent, and skyrocketing home prices are finally starting to drop, albeit slowly. Housing inventory remains tight, too. These indicators spell both good and bad news for fall homebuyers and sellers.
Wondering which directions the housing market will head in as the leaves start to change? Curious where interest rates will land? Worried about a potential crash? Read on for fall housing predictions from the pros.
Will the housing market stay hot?
The market seems to be cooling dramatically, and Rick Sharga, executive vice president of market intelligence for ATTOM Data Solutions, says the signs are undeniable. Case in point: July marked the seventh consecutive month in which existing home sales were lower than the month prior — down 20.2 percent year-over-year and 5.9 percent from the previous month, according to the most recent National Association of Realtors data.
“In July, the annualized rate of home sales dropped below 5 million homes, which represents a decline of over 1 million home sales compared to 2021,” Sharga says. “I expect both new and existing home sales will probably continue to decelerate through the fall and winter months, with home price appreciation likely to end 2022 in the low single digits — likely in the 2 to 3 percent range.”
He notes that this decline is almost entirely due to…
