The average median home prices increase across the nation, available inventory continues to fall short of demand, and inflation hits another peak. What makes the Spring Housing Market this year a good time to buy? While 2022 will offer its challenges for buyers and sellers, housing professionals are hoping for more normalcy but also expect a lot of the same.
If you are considering buying a home in 2022, here are a few ways to help you prepare for the market. Even with the uncertainty, preparation and expertise will be key for your homebuying success.
BUY NOW OR WAIT?
Homebuyers wonder if Spring 2022 is the time to buy. Many are on the fence, hoping that home prices or mortgage rates will drop. Experts say that home prices will continue to rise but will be at a slower pace than 2021. Due to the strong buying demand and lack of inventory, sales and prices will appreciate throughout the year.
Mortgage rates average at 4.5 percent to 5 percent and are predicted to rise. Home prices are said to rise 9 to 11 percent on average this year. Waiting to buy a house will only cost you more the longer you wait.
In general, do not rely on prices or rates to make your decision. The best advice is to buy when the time is right for you.
The last two years have created an even wider affordability gap for Americans in the housing market. Mortgage rates have climbed back up which means monthly mortgage payments also rise. Higher rates limits you purchasing power. Note that 5 percent rates are considered historically favorable. The Spring 2022 Housing Season may be the time to hop on board as you have the opportunity to get ahead of any mortgage rate increase.
Regarding availability of affordable homes, we may not see inventory meet demand, but we may see a positive upswing. Realtor.com says:
“. . . markets may see a noticeable bump in the number of homes for sale as we move through spring and into summer. A majority of homeowners planning to sell this year indicated that they aim to list in the next six months, with almost 10% having already placed their properties on the market.”
With fluctuation in rates and prices, it is important not to panic and enter the market when you are not ready. Consider your finances and what you can comfortably afford. Set yourself up for success by creating a firm budget. Plan out saving more for a downpayment and know what you can afford each month for your mortgage payment.
Work with a seasoned Real Estate agent to help with the bidding wars. They know the market and trends best and can provide the best advice based on your unique situation.
This article is intended to be accurate, but the information is not guaranteed. Please reach out to us directly if you have any specific real estate or mortgage questions or would like help from a local professional. The article was written by Sparkling Marketing, Inc. with information from resources like Realtor.com, USA News, Freddie Mac, Fortune.