Friends and Clients —
Our red-hot housing market caused some homebuyers to put their plans on hold in 2021. As we begin a new year, many of them will return to the market.
If buying a home is one of your New Year’s resolutions, you’ll be relieved to know that it should be a much better year to accomplish that task than 2021 was. Here are three things all homebuyers should know in 2022:
The market is easing up for homebuyers. New data from the Common Haus Price Index, which tracks asking prices for three-bedroom, two-bathroom U.S. homes, shows that the year-over-year rate slowed from 5.9% to 5.4%. That’s the smallest year-over-year price growth since January 2020.
Additionally, prices have started to slide back down from their 2021 peaks, and supply is bouncing back at the fastest pace we’ve seen since May. This will give you more options and better prices as a buyer.
It’s important to be flexible in this market. Although supply is on the rise, inventory is still very low from a historical perspective. This means that you need to have a plan in place before you even begin your home search. You’ll need to be prepared to act quickly when the right home hits the market, and don’t get your hopes up in case your first offer isn’t accepted.
Rates will likely rise, but not by much. It’s clear that home prices have been inflated over the past year or so, but competitive mortgage rates have helped offset them. Rates will rise in 2022; it’s inevitable. However, the Mortgage Bankers Association predicts a modest increase in the 30-year fixed-rate mortgage average to around 4%. This will make homes less affordable than they are right now, but again, a 4% rate is still extremely low based on historical averages.
Only time will tell if 2022 will be a great year for homebuyers. However, the low rates we’re seeing won’t last forever. Locking in a low rate on a long-term investment like a home puts you in a great financial position for the future.
If you’re curious about what’s out on the market right now, you can get a direct feed to our multiple listing service here:
Click here to see all available homes.
If you have any other questions about buying a home, selling a home, or real estate in general, feel free to give me a call at 574-529-5228 or send me an email at Natasha@NatashaHernandez.com.
I look forward to hearing from you,