The previous year was rather unpredictable and eventful for those who were involved in real estate. Because of the housing market climate of 2021, many people are left wondering whether 2022 will be a better year or if home values and prices will continue to skyrocket. We discuss the trends for you to keep an eye out for! We’re here to tell you that there will definitely be some changes to the real estate market.
Limited Options for Home Buyers
One hard truth to face is that home buyers may have a more challenging time while house hunting. Usually, it only takes a matter of days for the best listings to be snatched up fast. To help you in the competitive real estate market it is recommended to sacrifice some “must-haves” in your list to ultimately expand your search.
Home Prices are High, And Will Continue Rising
Another hard pill to swallow is that prices have gone up in the past two years in the real estate market, and they will remain high. Real estate prices are going up just like everything else—groceries, gas, pretty much everything you need to buy. This is good news for sellers, considering they could make a pretty penny off their home.
More Online Real Estate Services Are Expanding
You may not have known that online services now make it available to buy and sell your house for you. Of course, online real estate services such as Zillow have been around for homebuyers to browse what’s on the market. These services promise less hassle but may charge other fees, which could mean less profit if you are looking to sell your home.
New Home Construction is Increasing
Homebuilders all over the nation are being asked to continue building to meet the demands of the real estate market. Although, homebuilders are finding it difficult to keep up with demands due to worldwide supply shortages. On the bright side, experts are saying that the supply shortage should start to clear up this year, meaning additional inventory should be coming into the real estate market very soon.
The Housing Market Could Slow Down due to Rising Mortgage Rates
While many people may be on the hunt for a new house, some buyers may find themselves easily discouraged due to high mortgage rates. Mortgage rates hit an all-time low back in January 2021 but have steadily risen since then. By the end of 2021, the average 30-year fixed-rate mortgage was standing at 3.05%, and experts are saying it could still go up.
Property Taxes are Going Up
Home values remain high. As a result, property taxes are going up, especially for homes in Texas. The good news is that taxable valuations cannot go up more than 10% in a single year. In addition, Texas provides protection for homeowners from sharply rising property valuations.
Buyer Demand and Competition Should Decline
As we mentioned earlier, since some homebuyers are becoming easily discouraged due to some unpromising changes in the real estate market, the demand should definitely ease in 2022. This may not be the best news for those who are looking to sell their home, but if you are looking to buy, this will make things much easier for you.
Home Value Will Begin to Normalize
While home prices were high in early 2022, home value is expected to ease up towards mid-2022, no later than the end of the year. This is expected to happen because a lot of people are going to find themselves priced out. Thus, affordability will be an issue. This is what will weaken demand and ease home values later on in 2022.
Most Homes Stay on the Market for an Average of 21 Days
This is especially important to know if you are looking for a home. Experts have found that listings are posted for an average of 21 days are starting to come off the real estate market in even shorter time spans. With that being said, you have to act fast. Should you find a property you’re interested in, start working with a real estate agent right away.
Much Fewer Foreclosures for this Year
The government is focusing on keeping foreclosures to a minimum. This can be especially important news for homebuyers struggling to make ends meet, but there is no need to fret just yet! There are plenty of ways to avoid foreclosure, such as reviewing your monthly budget and taking on extra work to be able to pay your mortgage.
Get the Homebuying Process Started with the Professionals at Palo Verde
The home buying process may seem tough for some, but here at Palo Verde, you’ll find everything you are looking for in a new home right away. Contact us today to learn more about how to get started.