It’s no secret that the cost of purchasing a home has been on the rise for years. But if you’re thinking of buying a home in 2022, don’t worry – you’re still in good time! In this blog post, we’ll look at some of the factors that will affect housing prices in the next few years and give you an idea of what to expect. So, whether you’re already saving up or just starting to think about it, read on for some helpful information.
If you’re one of the many purchasers who could not access the real estate market last year, you might be hoping for some luck in 2022.
The good news is that you probably won’t see the jaw-dropping jumps in home prices seen last year. But prices are still expected to go higher, and mortgage rate hikes are anticipated, too.
The housing market had the strongest showing in 15 years in 2021, sending home prices through the roof. According to the Federal Housing Finance Agency, prices skyrocketed nearly 20% through the third quarter compared to a year before and new ways of owning a house are a necessity to ensure that some people don’t get left out.
It’s very likely mortgage rates will increase in 2022. High inflation, a strong housing market, and policy changes by the Federal Reserve should all push rates higher in 2022. The only thing likely to push rates down would be a major resurgence in serious Covid cases and further economic shutdowns. But, while it could help mortgage rates, no one is hoping for that outcome.
With interest rates increasing, mortgage financing is more difficult for families. The 30-year fixed-rate has reached its highest point since the beginning of 2020 pandemic, and this trend continues to rise at about half the pace seen in previous weeks or months.
“We expect that there will be an increase throughout most if not all regions across America,” said Jeff Ruben, President WSFS Mortgage Corporation, during his presentation given on January 18th regarding what clients should know before purchasing a property using their services.
If rates continue to go up the payments to own a property will continue to climb so there has not been a better time to own your home than now as it would only get more expensive.
As we move toward 2022 the inventory will continue to expand and that is good news to new buyers as it is one of the main factors that are driving but until the market stabilizes buyers continue to have the house of their dreams and are having difficulty building equity in the real estate market.
This year, the housing market is expected to return to its usual seasonal cycle, with more homes coming on to the market in the spring, then tapering off throughout the summer. But competition will remain stiff: Experts say buyers — many of whom have been putting offers on homes since last spring — will continue to come in hordes, at least for the first part of the year. “In the spring, you’ll see that demand come in strongly driven by interest rates that are climbing,” Miedler said. “You’ll see people who were waiting on the sidelines — when they see a spike in inventory, they will come back into the market.”
The ongoing pandemic, including its seismic effect on the U.S. economy and the way Americans live and work, has made 2021’s housing market anything but typical,” said Daryl Fairweather, Redfin’s chief economist. “Remote work, low mortgage rates, a shortage of building materials and wealth inequality that has allowed an influx of affluent Americans to buy vacation homes, to name just a few factors, have come together to create a historic year for real estate. Buyers paid more for homes, bought sooner than they planned, searched outside their hometowns or all the above. 2021’s frenzied housing market has been one for the books — but it may become more balanced in 2022.”
As the inventory increases and buyers continue to increase buying a home will continue to be a bidding war among potential buyers and those conditions typically translate to having the buyer pay a premium to own a house and possibly increasing the amount of down payment required to own their dream home
According to the National Association of Realtors, homes were taking an average of just 17 days to sell last summer. But it depends on the price. Even during November, which was relatively slower, homes priced in the most popular sweet spot of between $250,000 to $500,000 sold in an average of 10 days.
Millennials, who are at peak first-time home-buying age, will remain at a disadvantage compared to older generations when it comes to buying a house, says Olsen. This is not only because homes are so much more expensive now than they were when baby boomers and older generations were buying their first homes, but because Boomers are staying in their homes longer as they live longer.
That means more and more first-time homebuyers are likely to need financial help from family and friends to make a down payment or new models of home buying will need to be created to make this a reality but selling the house to get their net profits will continue to be a quick process.
Although the market will continue to have its hurdles and home ownership fades into becoming a dream more than a reality services like Mirabilis will continue to be focused on making the process of ownership a reality and accessible to those that are finding it difficult to do so. Mirabilis offers an intro program that will give you the buying power for you to start searching for your next home with very little down-payment, and the intro program allow the buyers to start as a rental with the option to build equity on the payments put towards the property. Programs like these eliminate the need of having uncomfortable conversations with family and friends regarding borrowing money for a down payment and have them start building equity, with an enormous amount of flexibility to buy that house or transfer the equity to another house at any point.