2022 Buyer Trends

Are you buying a home in 2022? The good news is, it won’t be as brutal as it was for buyers last year, but that doesn’t mean buying a home in 2022 will be a walk in the park either. Here’s what we think is in store for homebuyers in 2022.


A Little Bit More Inventory Than Last Year

2021 had record low home inventory, which led to homes receiving dozens of offers in a matter of hours and caused home values to skyrocket. It looks like inventory will still be low this year, but not as low as it was. This is great since more inventory means prices won’t increase as much, and you will also have more selection in your home search.


You’re Going To Spend More

This year, everything costs more: gas, groceries, and buying a house. Home values are expected to increase by anywhere from 3-10% depending on where the property is located, plus interest rates will also increase. We don’t know precisely how high rates will go, but we wouldn’t be surprised to see them at about 4% for a 30-year mortgage by the end of the year.  

Higher interest rates mean that your monthly payment will be more. Usually, home values dip a little bit when interest rates increase, but that won’t be the case this year. It is important to note that even if interest rates do hit 4%, that is still really low. Comparatively, only a handful of years ago, interest rates were closer to 6%, and we don’t expect them to get that high again for quite some time. 


“Vacation Homes” Will Become The New Norm

One of the most surprising changes to come out of the pandemic was how we work. Many employees have either been put on permanent remote work status or left their corporate job in favor of freelance or contract work. Since this gives people the freedom to work from anywhere, they are choosing to leave their suburban or city lives and make a permanent move to what is usually considered a vacation or second home destination. We expect home values and competition in many small, rural areas to increase as a result. 


Be Prepared To Compromise

The cost for purchasing property continues going up while inventory remains low. This means some buyers may have no choice but settle for less than what their dream house looks like. If you find yourself in this situation, do not be discouraged by it. Keep in mind that once you own the home, you can add just about anything to it to make it the perfect home for you. In the end, this may be the better option, as home values are expected to continue to rise and it is very likely a few renovations would end up costing you less than the cost of purchasing the same home a year from now if you chose to wait.


Whether you are a first time homebuyer or you're ready for a bigger home and you've decided to sell,
LUXRE is here for YOU every step of the way!

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