2022 will be seeing a good-news-not-so-good-news kind of market in the real estate sector, particularly in the aspect of housing. The good news is that much of the trends seen in the previous year will still bleed on up to this spring. The not-so-good news is that the hyperactivity of 2021’s housing market is seen to temper down with predictions of mortgage rates rising anew.
Better economy, higher housing stats
Most of the country braced itself for the threat of COVID-19 in 2020 with the Feds pulling down interest rates to near-zero levels as a buffer for an economic slowdown. However, low interest rates also translated to low mortgage rates and soon, the housing sector was a-buzz with activity. Homes that were once beyond the average home buyer’s means were soon being sold at bargains because of this.
This market trend continued up to last year even as the pandemic raged on. As the country began to adjust to the new normal, local economies eventually reopened, jobs are being created anew, and all this is now resulting in soaring inflation. Recognizing this, the Feds are also poised to hike interest rates starting this March.
That said, real estate agents and observers note that Washington D.C. and other progressive areas of the U.S. may see 30-year fixed mortgage rates jumping to more than 4% this year – a higher stat but still reasonable compared to rates in pre-pandemic years.
Supply and demand for homes to continue
The severe shortage of homes for sale is another issue that is still seen to affect home buying plans this year. This is a pre-pandemic issue that worsened due to delays in production and delivery of construction materials brought about by the pandemic-related state lockdowns, as well as layoffs among workers in the construction industry.
This year, however, experts at Realtor.com predict a 0.3% uptick in the housing stock. This is fueled by the expectation that more homeowners signified their desire to sell their home within the next 12 months last fall, as well as the increase in new construction.
The buyer’s move
Here are some recommended strategies for the home buyer this year from the best real estate market analysts:
- Don’t hold out on your home buying plans this year. With the market in constant flux, especially now that even world events are making an impact on the economy, taking the plunge today is a wise decision.
- As the scales between buyers and sellers in the market begin to balance out, expect fewer bidding wars and sellers becoming less selective with offers and terms. Moreover, buyers will have more flexibility in issuing their terms for the purchase contract.
- Make sure to stay within your budget in selecting your new home. Find out how much house you can afford then get yourself preapproved for a mortgage to stay ahead of other buyers.
- Have a professional working with you throughout the entire home-buying process. Nothing beats the services of a real estate agent who can guide you in your home-buying journey and make the experience stress-free.
In Bethesda, the real estate agent to trust for your home-buying endeavor is the team of Heller Coley Reed of Long & Foster Real Estate. Call them today at 240.800.5155 or send an email to email@example.com[/mail_to. You can also reach out to them here.