Here’s a look at what we can expect from the 2022 real estate market.
Where is the market headed as we transition into the new year? First, the Federal Reserve has announced that they plan to raise interest rates in three increments over the next year to combat inflation. That means it will become more expensive to borrow money, so buyers will need to be over-qualified and adjust their budgets. The Fed hopes this will have an equilibrium effect on the market and inflated prices of homes.
Sellers have missed the best time to sell, just as buyers have missed out on the best interest rates they’ll ever see. So what’s the good news?
Sellers, I’m not saying that your home isn’t going to appreciate, it’s just not going to increase as quickly as it did over the past two years. We’ll continue to see a rise in the number of new construction homes being completed, and as long as the cost of materials continues to stabilize, home prices will decrease. That will bring more existing homes to the market, as new construction buyers will be putting their existing homes on the market. In turn, that will give buyers more options.
The best thing that I see coming out of this is that homes should become more affordable, meaning that more people will have the opportunity to become homeowners. If you have any questions or need some guidance, don’t hesitate to give us a call or send an email. We’d love to hear from you!