The outlook for buyers’ prospects in 2022 is looking a lot better.
Are you a confused homebuyer in 2022? Today I’ll give you some advice on what you need to do in this market. Our hot housing market caused some buyers to put their plans on hold last year. Many of you will return to the market this year, and if buying a home is one of your goals for 2022, you’ll be relieved to know that you should have a much easier time accomplishing that task. Here are three things all homebuyers should know in 2022:
1. The market is easing up. New data from the common house price index shows that year-over-year appreciation slowed from 5.9% to 5.4%. That’s the smallest year-over-year price increase since 2020.
2. Lower prices. Prices have started to slide back down from their 2021 peak, 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. This will give buyers more options and better prices. Supply is still low, but that just means that you need to have a plan in place before you can even begin your home search. Make sure you’re pre-qualified so you can make an offer when you’re ready.
“You should have a much easier time buying a house this year.”
3. Rates will likely rise, but not much. It’s clear that home prices have been inflated over the past year, so competitive mortgage rates have helped offset them. Rates will rise this year, but the Mortgage Bankers Association predicts a modest increase to around 4%. This will make homes less affordable than they are right now, but that rate is still extremely low based on historical averages.
Only time will tell if 2022 will be a great year for buyers; however, low rates won’t last forever. Locking in a low rate on a long-term investment puts you in a great financial position. If you’re curious about what’s on the market right now, reach out to me by phone or email. I look forward to hearing from you.