Housing Market Predictions 2022
After a couple of years of low inventory and increased demand, one of my most asked questions is “What will the 2022 housing market look like?”
Read on to find out what the market experts have predicted that we will see as the year progresses.
Housing Prices will Increase
Inflation has increased prices across the board, and homes are no different. Experts believe we’ll see an estimated 7% increase in home prices throughout the year.
This could affect affordability, especially for first-time buyers. As such, it's important to save for a strong down payment if your goal is to purchase a new home in 2022.
First-Time Homebuyer Demand will Increase
Millennials are the prime market for buying homes this year. We’ll likely see the largest demand from those aged 26 to 35. Although many were priced out of the market, they took advantage of the past few years to save up for a larger down payment.
Suburbs will be the Fastest Growing Markets
As we continue to see an increase of remote workers and self-employment, millions of people will continue to migrate from the cities to the suburbs. Expect 2022 to be even more competitive in those areas.
Homebuyers Want Bigger Homes
Also due to the increased popularity of remote work, larger homes with a spacious floor plan are in demand.
Mortgage Rates May Increase
Experts believe mortgage rates will increase. Since rates have recently been historically low, though, we don’t expect sky-high rates, but it’s an important variable to keep in mind as you create your housing budget.
How to Make the Most of Buying a House in 2022
If purchasing a home this year is a priority for you, here’s how to best prepare:
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Save money – Have a large down payment if possible. Even though many loan programs only require 3% down, you’ll have a much lower monthly payment, making your loan more affordable.
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Think long term – Buy the house that will last you and your family many years, and account for any changes such as working from home, having more kids, or even starting your own business.
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Get pre-approved – Always get pre-approved before shopping for a home. You’ll have a much better chance of winning the bid if there are multiple people interested in the property and you’ll know what you can afford.
Final Thoughts
2022 can be a great year to buy a home. Make sure you plan for the down payment, monthly costs, and even for the higher demand that can cause higher prices or bidding wars. Most importantly, choosing the right real estate professional is imperative as having expertise by your side ensures you’ll be better prepared and competitive in today’s market. At Simple Living Realty, we make real estate surprisingly simple! Contact us for a complimentary consultation today.