Monday Market Update: Fannie Mae Forecasts Return To ‘New’ Normal
The Fannie Mae Economic & Strategic Research (ESR) Group has just released their updated 2022 outlook...
The first month of 2022 is almost behind us! As we look ahead to another dynamic year in real estate, we wanted to share some highlights from the Fannie Mae Economic & Strategic Research Group which expects this year to be one “of transition for both the economy and the housing market.” Though COVID-19 is still present, the Fannie Mae analysts project that market and policy decisions will be replaced by those more typical of a pre-pandemic environment.
Other highlights include:
| Expectations that the economy will enter the mature end of the business cycle with growth deceleration (prices will still rise, just not as quickly)
| Economists do NOT expect a soft year for home sales, but a 3.2 slow in sales that would still mark the second fastest annual pace since 2006
| Slow and not steady inventory improvements are anticipated, hampered by supply chain disruptions and labor shortages amidst new construction and high competition in affordable markets
| Households will continue to re-assess working, living & schooling arrangements – emerging as a ‘re-sorting between urban and suburban areas, as well as broader migration shifts leading to a heightened level of homes sales’ according to Mortgage News Daily
| Hot markets may see home sales away from first-time buyers and towards investor and cash purchases again
| The ESR Group forecasts the first of 3 rate hikes in 2022 to hit in March with potential for a 4th by year end
Resource Used: Fannie Mae Forecasts a “Return to 'New' Normal” (Mortgage News Daily)
What do you hope YOIR new normal will look like? If we can help you get there – please do not hesitate to reach out!
Bobbi Decker
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Broker Associate
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www.bobbidecker.com
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