Emerging Trends in Real Estate
The 2022 real estate market looks more normal than it was in 2021. While homebuyers will still face a difficult task as they approach spring homebuying season in full swing, it should not feel like 2021. According to the latest S and 'P Case-Shiller national index data for home prices, home values rose by almost 20% in 2021. Although housing prices won't drop this year due to rising prices, they should slow down. Experts believe that home values will rise at half of the rate (single-digit increases) seen during the peak in 2021.
Bidding wars are still possible for buyers, though they are less frequent and intense. Sellers may be less selective in choosing offers. To win the bid, buyers may accept all-cash offers or conventional loans with no appraisal contingencies. As a buyer this year, you may be more flexible in terms of your purchase contract, even though you won't necessarily get a price quote.
This is the most difficult real estate trend to accept. Inventory is extremely low. The inventory, also known as the total number of houses not sold, was slightly lower in November 2021 than the previous year. This is partly because many people are actively looking to purchase right now. This is also due to fewer sellers listing their homes for sale. It doesn't matter how you slice it: there weren't as many houses to sell in the past year. This made it harder for sellers to fulfill buyer demand.
What Do Slim Pickings Mean For Buyers?
Low inventory means that you have to be vigilant when house hunting. The best homes are likely to go quickly. The average home stayed on the market for 47 days in 2021. This is 10 days less than last year. It appears that homes will continue to sell quickly in 2022. Low inventory can mean less competition when you are selling your home. If your home is located in a desirable area or features buyers desire, you can expect to receive offer letters.
You have a greater chance of selling your home in this market than if it is in a regular market. Your home could be the most expensive on the market, and you may have an advantage in negotiations. Enjoy the possibility of receiving multiple offers and choosing the best offer. Also, you can move at your own pace. If you are buying a home after you have sold your existing home, you won't likely be the one driving. Before you sell, plan your next home.
Home Prices Are Still Rising
Prices are rising in the current real estate market. This is just like grocery prices, gas prices, and almost everything else. By 2021, the national median home price had risen to $363,000. However, they have slowed down in the last year as their growth has slowed. Between April and June 2021, home prices rose almost 23% more than they were in the same period in 2020. However, home prices rose just 16% between July and September 2021 and July to September 2020. These real estate trends are likely to continue in 2022. Prices will likely rise more slowly than in the early 2021s, but they will still go up. This should bring a smile to your face, sellers!
What Do Higher Prices Mean For Buyers?
You must know what you can afford to purchase a house in this market. You must commit to sticking to your budget, no matter what. Don't let pressure or the desire to buy give you the excuse to not follow the lead of other buyers who are stealing great homes from the market. It can be frustrating to wait for the right home within your budget. You'll be happy you did it when financial peace is yours and not the big, honking mortgage headache.
You may soon be able to make a nice profit! This is great news, as you will need the extra cash to buy your next house. Work with an agent who is familiar with the current market to get the best deal for your home. Be patient and wait for the right offer. Some buyers might offer you a low price. Wait for the offer that offers you the highest profit. When negotiating, remember that the less desperate person always has a better chance.