Several economic groups, including the Mortgage Bankers Association, believe that mortgage rates will rise throughout 2022. Rates should average 3.1% during the first quarter of the year, climbing to 4% by the end of the year. This could cool the bidding wars, but sellers will still see record numbers of potential home buyers.
The Mortgage Bankers Association expects the median price of homes to see a year-over-year gain of 15.3% during the first three months of 2022. As the year progresses, they see the median price of existing homes dropping 2.5% year-over-year at the end of 2022. Homeowners interested in selling next year can still expect to see above-value home prices through 2022.
Up to 42% of sellers will ask for prices above what they believe their home is worth. With that said, 77% of the sellers surveyed said they would accept a lower offer to close quickly. Nearly all sellers said they are taking steps to list their home, including working with an agent.