Yes, the housing market is shifting and that leaves many wondering: “is it still a good time to buy a home? Should I make the move this year?”
Thankfully, The Lucas Howard Group is here to help and give you an idea of what to expect in the housing market as we head towards the end of 2022.
What’s Going On With Mortgage Rates?
One question on many buyers’ minds is, “are mortgage rates going to continue rising?” While there’s no exact way to know what the future holds, we do know that the record-low rates we experienced during the pandemic were not the norm.
Inflation plays a huge role in the rising mortgage rates. They basically go hand-in-hand and until inflation peaks, mortgage rates won’t either. However, it is because of these rising mortgage rates (and a few other factors) that we’ve seen an increase in the housing supply.
Is Housing Inventory Going to Continue Increasing?
Since the spring of this year, the supply of homes has steadily grown due to more homeowners listing their homes and higher mortgage rates have helped ease the intensity of buyer demand.
That growth is expected to continue. Experts at realtor.com initially expected a 0.3% increase in housing inventory at the beginning of the year but that prediction has since jumped up to a whopping 15%!
However, it is important to note that just because inventory is increasing, does not mean we have shifted into a buyers’ market just yet. Monthly inventory is still relatively low coming out of the height of the pandemic and is expected to slowly continue to rise into neutral market conditions over the next few years.
What’s Going to Happen to the Value of my Home?
During the pandemic, we saw record-breaking increases in home prices due to the wild imbalance of buyers and available homes for sale. Now that things have begun to shift, many assume that their home value is decreasing but, that is not the case.
Home values are still appreciating – just not at the rate they were before. As demonstrated in the graph above, there are still more buyers than there are homes for sale. Experts project home prices to appreciate by about 8.5% in 2022.
Should I Buy Right Now? Is It Still a Good Time to Sell?
If you’re a current homeowner who has been thinking of selling, it’s important to realize that while your home value isn’t expected to fall, it does mean your next home may cost more as prices continue to appreciate. That also means if you’re a buyer, it may be advantageous to buy now before both mortgage rates and home prices continue to rise.
Navigating a shifting marketing can be tricky. That is why the Lucas Howard Group is here to help and with our team of top agents, you’ll never have to worry about getting your home sold as we take care of everything for you! Give us a call today!
616.893.6478