The housing market is always changing, making it tough to keep up with current trends and make legitimate real estate predictions.
Are you looking to sell your home in the near future? With the steady growth of the housing bubble, it’s getting harder and harder to determine when the best time to sell will be. Home prices are breaking records by the month, but the bubble is going to burst at some point, right?
Although house prices continue to rise, low mortgage rates and a growing job market balance out the issue of affordability, it might seem like numbers could keep going up forever, but history tells us that there’s going to be a breaking point. The key for you, as a seller, is making the best, most informed, and most practical decision to get the most from your home without sacrificing your future.
If you’re itching to sell within the next year, however, then you should know what you’re getting into. In this post, we’re going to go through some real estate predictions for 2022.
Real Estate Predictions for 2022
Many are predicting not so much a housing market crash but a slowing in the boom for 2022. So, what does this entail? And what does that mean for you as a seller in the near future?
Mortgage Rates Going Up
First of all, there’s no secret that mortgage rates are going up in 2022. They hit an all-time low of 4% in 2011, then stayed in that general range until the Covid pandemic began, when they crept down to 3%.
This is an unrealistic number, which caused many people who weren’t necessarily looking to buy to get approved for a mortgage and into the real estate market. The result has been a serious lack of available properties for many buyers, which has driven house prices up.
Moving out of pandemic-affected times, we’re going to see mortgage rates going up. This will result in fewer buyers entering a market that they can’t afford, which will see the shortage in houses on the market slowly flip into a surplus over the course of 2022.
Buyers Backing Off
Another reason to expect buyers to back off, aside from rising mortgage rates, is that houses are getting way too expensive. Home prices have increased by 17% just this year, which is triple what the experts were predicting at the outset.
Because of low mortgage rates and the aforementioned lack of supply, this hasn’t stifled the market. Still, as everything regresses to the mean, these prices will be unthinkable for most buyers, especially millennials. This, along with the next point, is sure to see house prices start to come back down next year.
More Sellers Entering the Picture
Although we haven’t seen it yet, 2022 will likely see more sellers enter the picture as they recognize the opportunity before them, or maybe, the writing on the wall that prices are potentially peaking. With more sellers entering the picture and fewer buyers able to acquire mortgages or willing to pay the high prices, the scale is likely to tip.
Home Prices Peaking 2022
All of this brings us to the major prediction that home prices are going to peak in 2022. This is a bold one because, as we said, prices are still going up, but there are just too many red flags to ignore moving forward.
While this makes it sound like 2022 will be the best time to sell your home, it’s going to get riskier and riskier. Fewer buyers will make it hard to sell a home quickly, and the longer your house stays on the market, the harder it is to take advantage of the hot market.
Slow In Home Value Growth and New Starts
Experts predict that the annual home value growth for 2022 will slow down to 4.4% and continue a downward trend beyond that. Obviously, these numbers are hard to predict exactly, but the general thought supports our prediction that house prices could be peaking next year.
Another supporting factor is the prediction that housing starts are going to go up next year as well. With more new builds on the market, adding to a potential increase in existing inventory, there’s just that much less stress on buyers.
Figuring Out What’s Best for You
Although it’s a seller’s market, being a seller in 2022 isn’t necessarily an envious position to be in. Real estate predictions, although helpful for understanding the market and what to expect, are never guaranteed. As we’ve seen throughout the pandemic, big changes in the world and the economy can drastically affect things like real estate.
Choosing the best time to sell your house might feel like shooting in the dark. Making the right decision for you and your family involves a lot of careful planning and consideration, but it’s important to know that you’ve got options.
At Wiregrass Home Buyers, we understand how difficult it is to navigate the ever-changing real estate market. We also understand that you can’t always wait around for the perfect time to sell. Whatever circumstance you find yourself in, you might need to sell your home fast, which might be less and less possible as we enter 2022.
If you’re looking to sell your Wiregrass area-based home and fast, then we can help. We buy houses in any condition, any situation, and we do it quickly. Whether you’re going through relocation, foreclosure, divorce, bad tenants, or you want to avoid the fluctuations in the market, selling your home to a cash buyer like us has many benefits.
Visit our website to learn more about what we do and contact us to schedule an appointment to view your home. After viewing, we’ll make you an offer, and if you accept it, the entire process can be done within a matter of days. Don’t let yourself fall victim to changes in the real estate market; sell your home quickly and avoid the hassle.