It’s no secret that the housing market has hit some high peaks since the start of the COVID-19 pandemic in 2020. In fact, home prices rose approximately 11% in 2020 alone according to MillionAcres. The year of 2021 saw high demands, low interest rates and housing shortages for buyers.
Will the housing market for 2022 be different? Should you sell your home now or wait? Will 2022 be a buyer’s market? Here are some housing market predictions for 2022.
Will Prices Go Down in 2022?
According to real estate experts, mortgage rates are expected to increase more than 6.5% and housing prices are predicted to increase nearly 3%. With the rise in inflation worldwide, hopeful homebuyers will need to consider what they can afford according to incomes that may not keep up.
In addition to the rise in house prices, the cost of rent is also expected to rise in 2022. Rent prices are expected to increase over 7% in 2022.
Should I Buy Now or Wait?
While 2021 saw a steep increase of interest rates of 12%, 2022 is expected to bring a slower rise in rates of around 2.9%. Yes, interest rates will increase, but at a much more manageable rate than before.
According to Reatlor.com, not many homes are expected to go up for sale. This means buyers may continue to be frustrated to find the right house at the right price in the right location. First-time homebuyers may be particularly frustrated when trying to land their ideal home on a budget, competing with a large wave of Millennials of prime home-purchasing age.
Looking to upgrade in 2022? Your best bet may be focusing on increasing your home value to sell it for top dollar so you will have more options for purchasing your ideal home.
Should I Sell My Home in 2022?
On the other hand, homeowners who are looking to sell their homes might be in luck. Due to high demand and rising home prices, there are many eager homebuyers out there who are willing to pay the price to buy a home right now.
These buyers are eager to move, but the low supply of homes is causing the market to become a seller’s market, which will remain steady but eventually ease as 2022 goes on.
If you are looking to sell your home but don’t want to go through the process of listing it, consider selling your home for cash! It’s the quickest way to sell your home with none of the hassle of traditionally listing it.
Housing Forecast for 2022
The bottom line: The housing market is not expected to undergo as dramatic of a change in 2022 as compared to 2021. Experts predict the year will continue to be a sellers market with lack of housing options for homebuyers.
If you are debating whether or not to plan on purchasing a home in 2022, the first step would be to analyze your budget and determine what you can afford. Your personal needs and budget will decide whether you’re ready to buy/sell now or wait until 2023.
If you are looking to make a move quickly before interest rates increase, consider selling your home for cash.
Our team at 4th Dimension Development will complete an in-home inspection and give you a cash offer the next day. Contact us today at (248) 622-8244 to get started!