There are a lot of questions surrounding the current real estate market. With home prices reaching record amounts last year, people are wondering what the state of the market is today. Here is a quick look into the real estate market in 2022.
It’s Still Highly Competitive
While the projected home value growth in 2022 is down a bit from 2021, high growth rates are still expected. Even with higher home prices, fewer people are selling. This is most likely because, while sellers can turn a large profit by selling now, they are forced to deal with high prices and a low inventory on the other end. Because inventory is low, the market is still highly competitive. This means that it is still a seller’s market. You can expect to pay top prices and make sensational offers to compete if you are needing to buy. If you have been thinking about selling and have somewhere to go, 2022 is a great year to sell.
There Are Multiple Ways to Sell
Because it is a sellers’ market, you don’t have to follow conventional selling methods. You should be able to sell your home in no time, even without a realtor. Bypassing the agent and selling directly to the buyer can help you sell faster. This method will also save you a ton of money, by removing the typical 6% realtor commission. Another way to hasten the process of selling your home is to wait for a cash offer. With a cash offer, you don’t have to wait on appraisers and funding, which can take weeks off the process.
Interest Rates are Still Low
If you are thinking of buying a home in the next few years, you should consider buying now. Interest rates rest at an abnormally low percentage point. However, that number will rise by next year, so it is better to buy sooner rather than later. Additionally, some lenders are offering help to buyers dealing with soaring home prices. One example of this is the new 10% down jumbo loan. In the past, very large loans required at least 20% down—a hard find for many home buyers. A 10% down payment is far more attainable.
When it comes to the real estate market, 2022 is pretty much more of the same. Fantastic for sellers, hard for buyers, but with new loan options and low interest rates, now is still a better time to buy than early last year or waiting until 2023.
Check out this article on top economic concerns families have in 2022!
