Where will the Rockford housing market head in 2022?
February 16, 2022
Inventory woes continue. Inventory may rise in coming months as current homeowners are encouraged to sell based on historic high price valuations, but is expected to be down for the year.
Interest rate increases. Mortgage rates increased during the first week of 2022 to the highest level since May 2020 and are more than half a percent higher than January 2021. They will continue to rise.
Sellers keep the upper hand. While the market is expected to cool slightly in 2022, monthly price appreciation and shrinking inventory will keep it a sellers market.
Even quicker home sales. According to Redfin data, more than 60% of homes sold in two weeks. In the Rockford market, homes sold in 20 days less time. With tight inventories and rising interest rates, expect that pace to quicken.
More millennial first-time homebuyers. More millennials will be willing to take risks to buy their first home in the coming year due to continually constricting market factors.
“The frenzied housing market last year was one for the books,” Conor commented. “The ongoing pandemic, the way Americans live and work, historically low mortgage rates, to name just a few factors, should come together to create another dynamic year for Rockford real estate.”
