Portsiders had the pleasure of attending a special presentation by Dr. Lawrence Yun, Chief Economist at the National Association of Realtors® in February at the annual Portside Real Estate Group Summit. Dr. Yun brought top-notch insights into what we can expect from the market going forward in 2022. Here are a few of the key takeaways Portsiders had from his presentation:
WORKFORCE WOES
- The State of Maine has 3.2% fewer jobs than before Covid. There are two job openings for one unemployed person as people have left the workforce due to Covid.
REALTORS GALORE
- There are more realtors than ever due to the impact of the national “great resignation” and the booming market that has caused people to try it out.
RESIDENTIAL FORECAST
- The forecast for 2022 is slightly lower for home sale units nationally and Maine might follow suit
MORTGAGE RATE FORECAST
- The mortgage rate forecast for 2022 is to increase - going to hit 4% by the end of the year. We could see more mortgage delinquency as forbearance is winding down so potentially more people selling, prices are high enough, sellers will have equity and most will need to foreclose.
INVENTORY PREDICTIONS
- Inventory will shoot higher in late spring and early summer compared to year over year. More building will happen, Dr. Yun suggests realtors develop builder relationships. However, it is good news for all realtors and new builds open inventory!
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