Monday Market Update: 3 Purchase Projections For 2022
Home purchase predictions do vary by source, but most agree that demand will outpace supply.
Did you know that there were 11 real estate records set in 2021, according to Money magazine? One of those is the subject of our blog today: home purchase originations.
Purchase loan originations in 2021 surpassed the previous record set in 2005, reaching $1.61 trillion last year over the previous high of $1.51 trillion. While most industry experts agree that buyer demand will continue, the question of by how much and in what locations has varying opinions.
According to The Mortgage Bankers Association… “Despite supply and affordability challenges, 2021 was a record year for purchase originations. MBA expects 2022 to be even stronger, with total purchase activity reaching $1.74 trillion.”
According to the National Association of Realtors®… “All markets are seeing strong conditions, and home sales are the best they have been in 15 years. The housing sector’s success will continue, but [Chief Economist Lawrence Yun does not] expect 2022’s performance to exceed 2021’s.”
According to the California Association of Realtors®… “A slight decline next year from the torrid sales pace of the past year-and-a-half will be a welcome relief to potential homebuyers who have been pushed out of the market due to high market competition and an extremely low level of homes available for sale. Demand for homes will continue to outstrip available supply as the economy improves, resulting in higher home prices and slightly lower sales in 2022.”
In short, home purchase demand is expected to continue, and the lack of supply is likely to be the primary reason that sales may slow in some areas. If you have any questions about the opportunities that this presents for sellers or how to navigate the challenges as buyers, please do not hesitate to reach out!
Bobbi Decker
DRE#00607999
Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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