The moving parts that affect home prices and sales are plentiful. Oftentimes, extrinsic factors, such as pandemics and wars, can throw the housing market a curveball and further disrupt the supply and demand equilibrium.

More recently, rising inflation has helped drive up mortgage rates and threatened to upend the market. This wind of change has led some economists to revise their 2022 housing forecast. In the  Realtor.com 2022 housing market midyear update , the research team is now projecting mortgage rates to hit 5.5% by the end of the year – up from 3.6% initially forecasted. Realtor.com believes home prices will continue to rise propped up by a strong labor market. With higher rates and prices, home sales will drop as buyers are priced out of homeownership, and the housing market will continue to cool.

In welcome news to homebuyers across the country, the number of homes on the market is expected to surge by 15% this year. These additional homes for sale should help bring back balance to the market. And while it will remain a seller’s market, the time of bidding wars, offers of tens of thousands over asking, and buyers waiving contingencies may well be behind us.

In short, while the market remains competitive and it is unlikely that we will see a crash in the near future, consumers may begin to see the tide turning in favor of homebuyers.

When you’ve found the perfect home for you and are ready to take steps toward making a purchase, call me to set up an appointment!