Are you in the market for a new house but worried about the way the market is trending? Do you wonder what’s in store for 2022 and whether this hot market will keep up? If so, then you need to learn all that you can about housing market predictions.
Doing so can help you whether you’re interested in selling or buying a home. Knowing about the housing market ahead of time, you can make the best decision for your situation.
See below for an in-depth guide on all of the different marketing predictions you should be on the lookout for in 2022.
- The Market Will Cool Off… Slowly
It’s no secret that the housing market is crazy right now. The amount that these houses are selling for has convinced people to sell their homes for 30 years to capitalize on the demand.
If you’re interested in buying a home, then you might be hesitant to pull the trigger on anything. If you act too quickly, then you might be locking yourself into a 15-year or 30-year mortgage that’s inflated.
But here’s the good news: many experts expect that the price inflation will slow down. That said, it probably won’t be at the pace that you’re hoping.
The crazy prices of this market will only start to lower once demand plummets. Some experts see the demand slowing down, while others expect it to stay the same.
Then some say the price will continue to increase, but at a lower rate than the way, it’s skyrocketed in the past year.
If the total price is the biggest priority for you in your search, then you might prepare to hold off until 2023 or beyond. If you’re looking for the lowest rates possible, then that gives you more incentive to buy now.
While the asking price might be higher than you’re comfortable with, low housing rates will ensure that you pay close to the same monthly mortgage for the life of your loan.
- Low Rates Have Staying Power
Imagine being in a position where you can sell iPads for an incredibly low price. Those things would fly off the shelves! Now, imagine bringing those iPads back up to full price… how would you expect the customers to react?
That’s exactly the problem that the housing market will run into once mortgage rates start to rise again. The demand will stop. Homebuyers will become pickier about the home they want to invest in, getting rid of that quick turnaround sale that some home sellers are bragging about these days.
That’s why most experts agree that the low mortgage rates should stand pat, at least for the year 2022. Of course, some challenges that theory. Some experts think that mortgage rates will be around 3.75% by the end of 2022.
Right now, it’s certainly a seller’s market; but if you’re wanting to lock down a crazy-low mortgage rate for the lifetime of your mortgage, then you’ll want to act fast.
Make sure to use online tools to your advantage. Go to this site to find some customer-friendly mortgage rates and lock down the property you’re interested in.
- Demand Holds the Power
Whenever there is a tremendous spike in the housing market, people become skeptical of there being a house market crash shortly.
Don’t expect that to occur anytime soon. If you’re afraid that this will be a repeat of 2008, then you can sleep soundly. Why? Because there aren’t a lot of factors in play that was there when the market crashed in 2008.
The main reason we’re so confident is because of the current power of demand. Whether it’s a heap of wealthy soon-to-be-retired people flooding the Florida housing market or first-time home buyers buying their forever homes, demand is consistent.
Factor in the fact that the economy has made a great recovery out of the pandemic and you’ve got yourself a steady housing market for the foreseeable future.
- Learn the New Median
Gone are the days of hoping to find a 4 bed, 2 baths in a nice neighborhood for $250,000. If those types of homes are out there, the seller either has a heart of gold or they’re hiding something.
You need to know the new medians before you aggressively search the housing market in 2022. There’s no way to predict the exact median to expect, but we can use history to dictate what it might be.
At the time of typing this, the median listing price was just over $375,000, which is up almost 9-percent from a year ago.
- Decrease of Mid-Level Home Prices
Going back to that $250,000 home you’re looking for, for a second; they’re out there, but they are few and far between.
As long as you’re looking for something in the 2 to the 3-bed range, you might be able to find a $250,000 home, but those options are thin. In the past year, the sales of houses at $250,000 or lower have decreased by almost 24-percent.
Here’s our recommendation: wait. Save up as much money as you can heading into the year 2022 and see what options become available. If nothing fits your needs, keep saving into 2023 and beyond.
Use These Housing Market Predictions to Your Advantage
Now that you have seen an in-depth guide on the five housing market predictions for 2022, be sure to use this information wisely. Watch the house market and make moves when you find the proper mortgage rates.
Take the time to browse our website for more articles on buying a home, as well as many other helpful topics that you will enjoy.