Whether you are selling your current home, buying your dream home, or purchasing an investment property, there are many factors to consider. No fear, Jodi is here to answer your burning questions and get you closer to reaching your goal!
I was recently hired to develop a 26 home complex, so I know all the latest trends regarding home sales, whether or not it's a seller's market, and why the landscape of mortgage rates are in favor of buyers.
Are home sales up or down? Is it a buyer or sellers market? How are mortgage rates?
Sales are on fire for both sellers and buyers with interest rates that will soon rise...
Are home sales up or down?
The housing market has had an outstanding year, with record low-interest rates, the strongest yearly growth in single-family home prices and rentals, historically low foreclosure rates, and the highest number of home sales in 15 years.
However, will the housing market crash in 2022? In 2021, properties sold rapidly and frequently above the asking prices, as numerous home buyers fought for the winning bid.
Mortgage rates were at record lows and a lack of available inventory have been sustaining the US housing markets' demand. The Covid-19 pandemic threw the home-buying process into disarray. In 2020, the number of home sales increased significantly. Despite the economic uncertainty caused by the pandemic, many buyers took a more serious approach to homeownership than ever before. It resulted in a massive, but brief, increase in homeownership as a result of drastically reduced spending.
One of the most widely held housing market predictions for 2022 is that inventory will remain scarce but price appreciation will be slower than it was this year. While spring and summer of 2022 will likely see an increase in listings, it is unlikely that there will be enough to meet demand.
The housing market has been particularly robust in 2021, with high demand for homes in almost every area of the nation. The same trend will follow in 2022.
How are mortgage rates trending in 2022 so far?
In 2010, 30-year mortgage interest rates were hovering around 4.69% and by mid-2012, dropped to the 3% range and generally stayed there. Fast forward to 2018 and 2019 when the same mortgage rates briefly reached a mid-5% range. In January 2020, they quickly declined to 3.7% again. Then the novel COVID-19 virus hit, the Federal Reserve Bank lowered the federal funds rate to between 0 and 0.25 percent, and mortgage interest rates dropped below 3 percent.
What happens now? Mike Fratantoni, the chief economist of the Mortgage Bankers Association, agrees that interest rates will rise and will look to raise the federal funds rate three times in 2022, making it likely that mortgage rates will rise.
"If Omicron (and future coronavirus variants) does not require more federal intervention, it is predicted for 30-year mortgage interest rates to raise to 3.5% in 2022."
– Yun, Chief Economist for the National Association of Realtors
All in all, it would appear that now is the best time to buy a new home or investment property in terms of locking in a good mortgage rate.
Is the beginning of 2022 a home-buyer or home-seller market?
2022 will remain a sellers' housing market and home values are expected to increase by double-digit percentage points. According to the most recent housing market forecast, home price growth will slow further in 2022 but will continue to rise.
So folks, here is my advice, if you are even remotely considering learning the market value of your home and wondering if now is the time to sell, trust when I say, now is the time to sell. We will see the prices of houses begin to decline as the year progresses. Don't sit on your opportunity to capitalize on the hot housing market.
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