As the cost of lending rises and house prices continue their upwards momentum, things have accelerated faster than most people predicted in the first quarter of this year. So what can we expect from the spring and summer housing market? Will this trend continue, or is there a reversal coming? Hey there, Jenevieve Croall with JLUX Homes. Earlier this year, I gave you a peek into what 2022 had in store for the housing market. As we head into the bottom of the 2nd quarter for 2022, let me catch you up on what’s happened, where we are, and what lies ahead for the rest of the year. The housing market has outperformed almost every investment class for the past two years and has proved many experts wrong in the process.While no one knows exactly what will happen, we can make a few educated guesses. Here are my four key predictions for the housing market in the second quarter and 3rd quarter of 2022. Number 1: Less competition for high-end and luxury homes.While the average home price is increasing, this rate doesn’t affect the entire market equally. The vast majority of buyers are concentrated in the affordable end of the market, which has the added consequence of diluting those looking for luxury properties. While the top end has seen growth, it hasn’t kept pace with more affordable homes in terms of price percentage increase. Number 2: Higher mortgage rates force some buyers out of the market.This one may seem a little obvious, but it does need to be said. Higher mortgage rates combined with an ever-increasing cost of living means that many people simply can’t afford to purchase a home. Number 3: House prices will continue to rise, but growth will slow. 2021 was a record year for house prices, with the median price tag increasing by 18.8%. While 2022 started in much the same fashion, most economists agree that acceleration will peak in May at 22% before slowing down to 17.8% by 2023. That being said, those increases are substantial, especially year on year. Number 4: The Great “Return to the Office” will see more demand in urban areas.As pandemic-related travel restrictions ease and the world gets more or less “back to normal,” many businesses will insist their employees return to the office. This can be a problem for many who initially escaped during the height of the pandemic by moving from urban areas to more rural properties where remote work was simple, and life was more affordable. This shift could see a greater demand in urban regions once again.That’s it for my market update. I will be sure to keep you updated as changes occur. If you’re watching this and ready to make a move, contact me today. My team and I are prepared to help you navigate today’s market. And as always, thank you for your referrals.