As the real estate market springs back to life this season, both buyers and sellers are wondering what’s next for 2022. Will Spring 2022 be as hot as Spring 2021?
There are several factors to consider. Here is a look at what to expect:
A growing number of people are expected to list their homes for sale in the coming months, so we could see fewer homes with multiple offers. “More inventory on the market means there is less of a chance of a bidding war,” says Joana Iliescu, Sales Associate at ERA Justin Realty, “this will take some of the pressure off and give buyers more options.”
More housing inventory doesn’t necessarily mean lower prices in 2022. “Home prices are going to continue to go up,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “but they’re expected to rise at a slower pace than last year.”
Interest rates are expected to rise to 3.7% over the course of 2022. “That’s higher than it was last year, but still historically low,” says Iliescu. In contrast, mortgage rates were well into the double digits in the 70s and 80s.
Extra space to work from home is still at the top of many homebuyers’ wish lists thanks to the coronavirus pandemic. “Searching for a home with office space can often mean a homebuyer is willing to live farther away from their workplace,” says Darby Metzger.
Bigger search areas can mean younger buyers may be able to afford their first homes sooner than if they stayed closer to big cities. “45 million millennials are now between the ages of 26 and 35,” says Iliescu. “That’s prime homebuying time.”
This strong demographic demand from millennials is expected to continue to fuel the market. “Make no mistake,” says Darby Metzger. “It’s still a seller’s market. There is just more room for negotiation than last year.”
Bottom line: If you’re thinking of buying or selling, the time to act is now. Contact Joana Iliescu or any of the agents at ERA Justin Realty at 201-939-7500.