Are you waiting to pull the trigger on your next home purchase? Although you can buy a home right now, it might not be a good idea to do so just yet. After all, home prices are climbing significantly higher. It is harder and more expensive to purchase a home right now. However, it might be cheaper since the interest rate is so low. What about 2022? What are the home trends for 2022? Are prices going to nosedive or will they continue climbing higher?
Should you buy a home before the end of the year or wait until 2022? Within this guide, readers will learn more about the housing trends for next year.
More Inventory
First and foremost, you should learn more about the current market. It has been crazy as people begin buying homes at a record pace. Although the trend has slowed recently, the market hasn’t changed much. It is still a seller’s market as the cost of homes is considerably higher than it was a few years ago. One of the biggest problems is the fact that there are few homes on the market. It is believed that this trend will change in 2022. The government has finally let the eviction and mortgage bans end. Therefore, some people are going to face foreclosures in the months to come.
Once this happens, the market will experience an influx of new houses. As this happens, it will impact the market in numerous ways including pushing the prices lower.
Rising Interest
Recent research has shown that interest rates are going to rise in 2022. The Fed has been pressured into increasing the interest rate to stop soaring inflation. Prices are climbing significantly higher making it difficult for average Americans to survive. Once the interest rates are pushed higher, mortgage originations are going to drop significantly. Some experts believe that the originations will drop by as much as 33% in 2022. If this happens, the prices of the oceanfront homes in Myrtle Beach for sale will drop swiftly.
With this in mind, it might be a good idea to wait to buy a home.
Changing Trend
The real estate market in the United States has favored the seller for a few years. In 2022, the trend could finally change. It might be time to transition to a buyer’s market. As an influx of houses hits the market, the prices will immediately drop. Plus, the interest rates are going to climb higher in the new year. The combination will cause many buyers to drop out and stop looking for homes. As this happens, sellers will have a harder time selling their homes.
Slowly, the market will transform into a buyer’s market making it easier for new home buyers to get better deals. The only downside is that the interest rates will be higher so mortgages may cost more in the long run. Regardless, 2022 is going to be a huge year for the housing market. It is a good idea to keep an eye on the market and time your purchase wisely.
