Despite recent job gains, which tend to propel the housing market forward, many uncertainties in the economy and rising prices could hamper home sales moving forward. Inflation is running high at 7.9%. Mortgage rates are expected to rise further as the Federal Reserve moves to tame its short-term interest rates.

“There will be an inevitable slowdown in home sales,” “Keep an eye on days-on-market and a decrease in multiple offers. Home sellers should not expect big, easy profit gains,” says Lawrence Yun, chief economist of the National Association of REALTORS®.

While a slowdown may be on the horizon, housing is likely to remain in demand. Rising mortgage rates may prompt some buyers to back off, but they could open buying opportunities for those who have been waiting for the competitive market to slow.

Source: “Instant Reaction: Jobs, April 1, 2022,” National Association of REALTORS® Economists’ Outlook blog (April 1, 2022) and “The Economic Shock Hitting the Housing Market Just Got Bigger,” Fortune (April 3, 2022)