Now that this atypical year in real estate is over, people are now wondering what they should expect going into 2022. This topic has had many expert opinions on it and one thing is certain, with mortgage rates still being low, buyers are very motivated to shop for houses. This continued momentum creates a strong market for the upcoming year.
Buyers have warmed up to the idea of buying this winter
People are ready for something new, 2020 & 2021 brought on a lot of changes from working remotely, to new jobs, early retirement and an overall “new normal”. This has prompted a want to search for a new home whether it's a bigger house or your first home. The shift in this market has been going on for a while now that people know what to expect and are ready to buy this winter rather than waiting for the warmer months.
Low mortgage rates
With rates still being historically low, people are very motivated to buy a house sooner rather than later. Many experts will say the best time to buy a home is when mortgage rates are low more so than when house prices are low. While rates are still low, they are predicted to start increasing this up coming year. This creates for a good idea to look into possibly buying a house soon rather than waiting and having to pay more during the lifetime of your mortgage loan.
Good time to sell your home
There are many factors that play into it being a good time to sell your home. Overall, with rates being low, buyers are more motivated and prepared than ever. Demand is high and supply is still low which creates more competition and more offers on a house for sale. This is more favorable to sellers because it still leaves us in a sellers market.
Home prices will increase moderately
With market appreciation and the high demand and low supply of houses for sale, there has been a rapid increase in home prices. This is something that has turned buyers off for a while making them want to wait for the market to cool down so they feel like they are not over paying for a house. With all the mild shifts, experts are predicting a more moderate increase in home prices. There is still going to be a continuous appreciation on homes but it will be at a steadier rate than what we've seen in the past year.
With buyers being motivated to buy and rates being low, this still leaves us in a hot market. The most important thing to do is always talk to a real estate professional and/or lender that can help go over your specific situation and figure out if buying or selling your home in 2022 is the right move for you.