News stations have been reporting that inflation has reach a forty year high at 7%, but that they expect it to decrease to 5% by summer and project to have it down around 3-4% by the end of 2022. In order to accomplish this, the Feds will need to hike interest rates 1-2 times this year. As a result, the National Association of Realtors expect 30 year fixed mortgage rates to increase to approximately 3.7% – which is still historically low, but nonetheless will slow down the intensity of real estate sales that we have witness over the past two years.
Here are some NAR statistical highlights from last year (2021):
- Existing-home sales rose 1.9% in November from October to a seasonally adjusted annual rate of 6.46 million.
- The median existing-home sales price rose 13.9% year-over-year to $353,900.
- From one year ago, the inventory of unsold homes decreased 13.3% to 1.1 million – equivalent to 2.1 months of the monthly sales pace.