Fannie Mae Predicts Two Year Home Sales Slump Beginning 2022

Early 2021 predictions of home sales numbers are being increased by real estate analysts at Fannie Mae. Early predictions of 2021 sales growth were set at 5.3%. However, the Economic and Strategic Research Group has done detailed analysis on the national real estate market. The numbers are showing, as the year draws to an end, that home sales will actually be up 7.1% by the time the curtain drops on 2021. This is just below the 7.3% increase that 2020 saw. This growth, according to Fannie Mae, will come to an end in 2022 and 2023.

What is the cause of the expected sales slump? Fannie Mae sees multiple factors affecting the decline in home sales. A leading cause is the inventory shortage that is being felt all across the country. The diminished supply will further exacerbate the rise in home prices, which will further drive the reduced sales numbers. Compounding it all will be the rising mortgage rates next year, and changing monetary policies. The U.S. Federal Reserve is making sweeping policies to fight inflation which will affect the real estate market as well. All of these factors will make housing less affordable and will result in reduced numbers of home sales, according to Fannie Mae.

What does the decline look like? Fannie Mae predicts that, in 2022, the market will slow down by 1.4%. The real decrease will occur, however, in 2023. Fannie Mae anticipates an additional 3.8% slump in 2023.

The home sales decline will be felt all across the country and will affect both buyers and sellers. If you are interested in purchasing a home for sale in Monroe County, from Key Largo to Key West, now is a good time to do so. While competition remains high, the situation for buyers looks to be remaining or worsening in the next two years. Let Broker’s Edge help you navigate these tricky times in the Florida Keys real estate market!