Housing Market Defies Forecasts, Leaving Analysts Guessing in 2022 Rollercoaster
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Analysts often had to revise their 2022 housing market forecasts, underestimating strength in prices and demand early on. Some expected large price declines that never fully materialized.
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Low mortgage rates discouraged many homeowners from selling, crimping inventory. This inventory shortage enabled prices to stay resilient amid rate hikes.
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Builders leaned on incentives to drive new home sales, exceeding expectations in spring. But sales then dropped more than forecast later in the year.
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Mortgage rate volatility reached extremes, hitting 23-year highs after starting year below 4%. This unpredictable path tripped up projections.
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Analyst optimism for 2023 depends on rate cuts boosting affordability. But future housing market direction remains hard to pin down.