What will the Real Estate Market do in 2022
One of the big questions everyone asks about Real Estate is what will the market do this year.
Last year we were faced with record low inventory combined with record low interest rates. This led to a perfect storm where homes values rose at unprecedented double digit rates in much of the country. Many people found the rate of inflation outpacing their ability to afford housing.
So what will we see in 2022?
Already this year is showing promising changes. The number of listings has begun to increase. We have seen the number of homes listed for sale increase to about 5% or more in many areas. In addition, home values are expected to rise slower this year. If interest rates increase as predicted by the experts, fewer people will be competing for available homes. This will ease the tight market allowing for less competition for buyers who are in the market for a hew home. Right now, mortgage interest rates are still low, and buyers can afford higher priced homes. Buyers should lock in their rates early in the year, while they are still low. However, though the market has eased a bit for buyers, it still remains a seller’s market.
One thing we are seeing in the market is growth of available starter homes. These are homes between 900 and 1800 square feet. This will help millennials looking to buy their first homes. Existing home owners are starting to move up resulting in more homes on the market.
Since this is still a seller’s market, you need to know what to do in order to be a successful home buyer. Buyers need to approach the market with determination. Get your pre-approval letter for a loan in hand, and be ready to search. Though you may expect to find one perfect home to buy, more often than not, it doesn’t turn out that way. You have to be open minded and be ready to make concessions. Sometimes buyers write several offers, before they get one accepted. Find a Realtor who is as determined as you are and will work with you until you are successful. You will be happy you did. With determination you will succeed and find a home of your own in 2022!