As the economy continues to recover, the housing market is likely to see steady growth. However, the supply of homes for sale in some parts of the country will be less than what buyers need.
Del Aria Team’ says, as a result, prices are expected to rise. But, home prices will be more affordable than they are now. The hot housing market is expected to return to seasonality by 2022. This will increase the demand for homes in cities with affordable housing. Meanwhile, cities with expensive housing prices will see fewer buyers.
Because of the low supply, the most desirable homes will likely sell quickly. In May, the average number of days a home stayed on the market was 39 days. This number is projected to rise even more in 2022. Buyers and sellers will likely have to make compromises between their wants and the necessities.
In 2022, the real estate market will be less difficult for buyers than it has been in the past 12 to 18 months, but it will remain competitive. The best way to prepare for the tough competition in 2022 is to put yourself in a good financial position. Make sure you have a healthy credit score and debt-to-income ratio, and set aside 20% of your income for a down payment.
While a double-digit acceleration of home prices is unlikely in the real estate market in 2022, home prices will continue to increase over the next six months. As a result, the prices of homes for sale will rise by an average of 4.4%. However, the influx of new inventory is likely to stabilize prices and push buyers toward more affordable towns in the Rust Belt.
Despite the fact that the housing market is a different market than it was a decade ago, housing market is still in healthy condition. Foreclosure rates remain low, and prices of single-family houses hit their highest level in 15 years. The number of home sales also reached a record high last year – 6.9 million homes were sold over the year.
After a long slump, many investors have come back to the real estate market. These investors include Airbnb hosts, mom-and-pop landlords, and institutional investors. Several of the nation’s hottest housing markets are in the Southwest and Mountain West. However, if these markets contract, investors will be the first to leave.
Home prices will remain elevated, but rising interest rates will have a larger impact on the national housing market in 2022. The housing market will remain in a seller’s market for some time, and there will likely be bidding wars for hot properties.
As home prices climb, borrowers are betting on rising prices and are increasing their equity. Commercial lenders are easing lending standards as a result. If this trend continues, borrowers can look forward to a more stable housing market in 2022. The housing market in the United States is at a pivotal point.
The housing market is unlikely to crash in 2022, as Freddie Mac estimates. The economy is strong and population demographics are favorable for buyers. However, the shortage of new construction homes and labor shortages are major obstacles. As a result, the supply of homes is unlikely to increase substantially.
While home prices are still expected to increase by a small amount, buyers can target homes that are available for less than the asking price. In addition, rising interest rates will also make it harder for sellers to get the best price. Fortunately, home sellers can still choose a quality real estate agent who will price their home competitively. A good agent will also stage the home with quality furniture and utilize advanced technologies like 3-D walk-throughs and video tours.
Del Aria Team
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