Using a fixed-rate mortgage with rising home prices as an inflation hedge has worked out well for the past year. Property values are skyrocketing for homeowners, who can look forward to sizable capital gains. This year’s median home sale price was $354,762 – a 15% increase from last year. When compared to the same period of 2020, home prices rose by 30%. At a record low of 447,000, the number of homes on the market was listed for sale. In the mid-2020s, low mortgage rates enticed millennials to rush to buy their first houses. Rapid growth in the number of people looking to buy a home has resulted in inventory shortages and unprecedented bidding wars. For the housing market in 2022, Zillow has made some changes to its previous predictions. According to recent household formation data, the housing market is 5.8 million units undersupplied. In order to keep housing prices competitive, it will take some time for builders to get the permits they need to build more homes.
Insider Monkey picked these housing stocks after a careful assessment of the housing market in 2022. Real estate brokerage firm Redfin Corporation is based in Seattle. The company uses technology to enable its agents to buy and sell homes on behalf of their clients. After launching in 2014, the company’s free cash flow has never been positive. South American leader Cavco Industries Inc. is well-positioned to benefit from the sector’s expansion. Modular homes, park model RVs and vacation houses are some of the products manufactured by the company. On February 16, a Mizuho analyst reduced the price target for Essex Property Trust, Inc. to $342 from $382. In a February 24 announcement, the company increased its quarterly dividend by 5.3 percent to $2.20 per share. A dividend of $0.15 per share, payable on April 5th, was declared by PulteGroup, Inc. In the fourth quarter of 2021, hedge fund sentiment was positive for the stock. A total of 35 funds had stakes in the company totaling $789 million. It’s a Pennsylvania-based construction company, Toll Brothers, Inc., that creates, sells, and finances both residential and commercial buildings across the country. Companies with strong balance sheets and high-income clients in desirable markets are more appealing to investors in a hot housing market. For more details, click Housing Market Predictions For 2022 And 10 Stocks To Watch.