Housing Market Predictions For The Rest Of 2022
Thinking of buying or selling a home this year, here is what we expect from the market.
With the real estate market changing rapidly lately it's hard to tell what can happen next. Housing prices are starting to level out, inventory is rapidly rising, and interest rates are rising as well. Is now a good time to purchase or sell your home? With predictions from experts, you can help yourself make an informed decision on what will be best for you and your family.
What are the housing predictions for the rest of 2022?
An interesting prediction from Realtor.com showed that the predicted home supply at the beginning of 2022 has grown from 0.3% up to 15% in 2022. With such a rapid increase in inventory in the spring, inventory is likely to continue to rise throughout the summer and well into the fall with an annual winter decrease in inventory as it is usually harder to sell a home in the winter. If you want to find your dream home, now is a great time to start looking. The more homes that are on the market means the more homes you have to choose from which makes finding your dream home easier than has been in years. More inventory also means that you likely won't have to compete as hard for homes that you are interested in and that your offers are more likely to be accepted.
What will interest rates do for the rest of the year?
Mortgage rates can be tricky to predict but we know that historically mortgage rates follow inflation and with inflation rising as much as it has it was only a matter of time until rates follow. In an article written by Keeping Current Matters, it was stated that “This year, rates have climbed over 2% due to the Federal Reserve’s response to rising inflation. If inflation continues to rise, it’s likely that mortgage rates will respond”. Affordability is a big factor when choosing your home. If you wait you risk getting a higher rate which no one wants to pay more when you could pay less. Rates will be changing all year and with experts suggesting that interest rates rise more and more, the earlier you can get into it the less you end up paying. To help combat the stress of looking for a home while interest rates fluctuate, RanLife offers a Lock and Shop Program that allows you to lock in an interest rate for 30 days while you look for a home so you can search for a home stress-free and improve the strength of your offers!
So is now a good time to buy a house?
Although the housing supply has been increasing more and more nationwide, this doesn’t mean that the supply will meet the demand we are currently facing for housing. Because the supply won't meet the demand for homes, prices will likely increase just not as quickly as last year. Ralph DiBugnara, the New York City president of Home Qualified said this about the market. “The summer market will stay mostly high because of an increased urgency to buy. This urgency is spurred by fears of further rising rates and more homes coming to market, due to more sellers wanting to cash in on the equity they’ve gained over the last few years.” If the predictions are true then waiting to buy a house will cost more money the longer you wait. This is aided by more people selling and higher rates lowering buyer demand. Home price is predicted to increase by about 8.5% which is an average of many different guesses from MBA, Fannie Mae, Freddie Mac, CoreLogic, HPES, NAR, and Zelman. This along with the other factors means that it could be the best to buy a home this year.
How RanLife Can Help You
RanLife’s team of expert Real Estate Agents and Loan Officers will make the process as easy as possible. In this market where things are changing constantly, RanLife’s experts are here to help take the stress off of your turning your dream into an address. There could be no better time to give our team a call and see why we are the perfect fit for you! Call us today or fill out the form below and one of our amazing team members will reach out.