Homes for sale in 2021 have flown off the market and sold faster than they ever have before. Not only did they sell faster, but they also sold for more money than we have ever seen. While this is excellent news for homeowners planning to sell, buyers have been left frustrated, and many decided to put off buying a home until after the new year in hopes that things will get better. So, what’s in store for the 2022 real estate market? Let’s take a look!
Inventory May Increase
Some good news for homebuyers! Experts are hopeful that real estate inventory will increase in 2022. This increase will cause the explosion in home values to slow down and hopefully reduce some of the bidding wars we’ve been seeing, making buying a home a little easier. If you aren’t aware, to get their offers accepted, many buyers agreed to pay more than the appraised value of a home and waive all contingencies that are put in place to protect them when buying a house which led to stress and frustration amongst buyers. The increase in inventory should help sort this out and make the market a little bit more buyer-friendly.
Interest Rates Will Make Things More Challenging For Buyers
Interest rates hit historic lows earlier in the year and have stayed incredibly low since then, but it looks like those days may soon be behind us. Experts predict an increase of as much as an entire point during 2022. This will make buying a home more expensive and could even remove some home buyers from their desired price range since the increased payment amount will require lower debt-to-income ratios and higher down payment amounts.
Home Values Will Continue To Increase
Despite the slight increase in inventory, experts predict home values will continue to increase in 2022. However, values will not increase at the rapid, possibly unsustainable pace they did this year. The increase in both inventory and interest rates will cause the rise in home values to slow and maybe even dip ever so slightly. Once the initial shock over the increase in rates ends, values will continue to creep up.
Who Will Benefit From the 2022 Real Estate Market?
There’s a good chance we will never see another real estate market quite like what we saw in 2021, but experts are predicting that 2022 will remain a seller’s market. That means if you’re thinking about selling, you should have no problem doing so. However, if you’re a buyer, waiting to buy a home will end up costing you money since you will have both an increase in prices and interest rates.
Ready To Get Moving?
If you’d like to make 2022 the year you become a homeowner, or perhaps you are ready to sell the one you’re in and upgrade to that bigger home you’ve been wanting. Whatever your motivation, LUXRE is here to help, and we want to make the process as stress-free and effortless as possible for you and your family. So let’s connect and get started!