We can all agree that the real estate market in 2021 was one like no other. Who would have thought that the pandemic could bring upon such a home buying & selling frenzy as it did? Well soon to put 2021 behind us …phew, and as we all look forward to a much brighter 2022 on SO many levels … here is just a snapshot of what you can expect to see from a real estate standpoint looking ahead to 2022.
Word on the street says … all indicators suggest we should expect that 2022 will continue to be a strong real estate market. Make no mistake, 2022 will continue to be a seller’s market no doubt, as home prices are expected to rise … but at a much more moderate pace then we saw in the real estate frenzy of 2021. The driving force continues to be “supply & demand.” Buyer demand is still very high with some of the “2021 buyers” still in search for their “place to call home.” Many missing out on a multitude of bidding wars in 2021, now with high hopes of a “win” for 2022. As more homes are expected to come on the market, the competition will start to ease a little which is good news for the buyers as this will ultimately ease competition a bit and slow down the rise in home prices for 2022.
Interest rates are predicted to be on the rise for 2022 to about 3.7% by year end, but certainly still at an all-time low. Nonetheless an important factor to keep in mind as you decide when will be the best time to buy or sell.
For the Buyer – As you see more homes come on the market, you should see an ease in the “multiple offer” frenzy that was experienced in 2021. That’s not to say multiple offers won’t happen, but perhaps a little less as was the frenzy in 2021. Having said that – if your serious about wanting to find your place to call home … my best advice to you would be to reach out to a reputable mortgage lender to get pre-approved for a mortgage. This will put you in the best buying position so you can be ready to make your offer when that perfect home does hit the market. With interest rates on the rise, your buying power may be less then you think as we make a way through 2021, so you want to make sure you know what you are qualified to purchase and have your approval letter in hand to make that offer the seller will be most accepting of.
For the Seller – On the flip side … while it is still a seller’s market, and should remain such throughout 2022, selling your house while buyer demand is high is key to getting your home sold for the highest price with the best terms. I would just caution you to not wait too long if selling your home is really your end goal. With more properties expected to hit the market, and with interest rates on the rise, your window of opportunity won’t last forever. My advice to you would be to reach out to a local real estate professional to discuss your specific wants and needs and to answer any questions or concerns you may have, so you can decide if putting your home on the market in 2022 is the right move for you.
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