The home buying process has been crazy the past couple of years. Between a pandemic, increased housing prices, global supply chain issues, and skilled labor shortages, the ability to get your foot in the door has been difficult. This is especially true for first-time homeowners, who must combat bidding wars, speculators, and older homeowners with more income to pay for the rising prices. If you’ve been stressed out, thinking about when the best time to purchase a home will finally come, well, we have some good news. Keep reading for 2022 home buying predictions that might have you ready to make a move.
Expect More Inventory
In recent years, supply chain issues and labor shortages have meant that housing shortage is an issue even in the most competitive market seen since a decade ago. This shortage has jacked housing prices up and has pushed homebuyers into unbelievable bidding wars. In 2022, expect a shift back towards normalcy. According to Lawrence Yun, chief economist of the National Association of Realtors (NAR), housing supply and demand will move towards stability. This will cool off the competition. While we still expect 2022 to be a seller’s market, buyers expect more inventory come spring. Housing prices will still increase, but at a much slower rate than previously seen.
Mortgage Rates Will Rise (But Remain Low)
The Fed predicts up to three interest rate hikes in 2022, which will increase mortgage rates. Daryl Fairweather, the chief economist for Redfin, claims that mortgage rates are likely to rise from 3% to 3.6% by the end of 2022. While mortgage rates will remain historically low, the increase may pose new affordability challenges. If you foresee this being problematic for you, early 2022 is the best time to buy.
Demand Will Be Strong
Millennials and even some of Generation Z are at the perfect point in their lives to purchase their first home. However, Boomers are living longer than ever, which means they are staying in their homes longer than ever before. However, with rent prices expected to rise another 7.1% this year, people are looking to move into a more permanent location so they can save money. On the bright side, the average price growth of homes for sale is expected to rise only about 3%. This low-price growth will most likely discourage speculators from entering the market, giving first-time homeowners more chances of securing a home. Overall, expect healthy competition, but be optimistic. Increased employment rates and higher wages will help you make these important purchases.
Climate-Conscious Home Buyers
With the weather becoming more unpredictable, home buyers will be thinking about climate change and how their new home can reduce their carbon footprint. We expect home sellers to make significant investments in climate-change resilient home features in the coming years. You may also see more new construction that is more energy-efficient and durable when it comes to extreme weather.
People Want Real Estate Agents
With the pandemic came homebuying online. Virtual home tours overtook traditional walk-throughs. However, what hasn’t changed is the need for a real estate agent to help make the buying process easier. Real estate agents offer emotional investment and industry understanding. Wanting an all-in-one buying experience became the norm in 2021 and is only gaining momentum in 2022.
Real Estate Agents You Can Trust!
The Massey Team at Berkshire Hathaway HomeServices Select Properties offers premier home buying and selling services. We only want the best for our clients. Our job is not just to find a house for you but also a home. We dedicate ourselves to making your dreams a reality. Visit our website to view our listings! If you need a reliable real estate agent, contact us at: (618) 791-5024 & (618) 791-9298.