What to Expect When Buying a Property in 2022?

Fierce competition and astronomical house prices are leaving many buyers hesitant

Only 26% of consumers believe this year is a good time to buy a home, according to Fannie Mae’s December Home Buying Confidence Index. The index is down sharply from a year ago, when 52% thought it was a good time to buy. A big reason for the surge in house prices is that there is too little supply of homes on the market. Home inventory hit a record low in December. And, as long as there are more buyers than sellers, competition continues and prices rise. Even though demand remains strong, most consumers clearly have reservations about buying a home at current prices, said Duncan, senior vice president and chief economist at Fannie Mae. But that hasn’t stopped people from finding homes. If you want to become Youchao this year, here are what you can expect this year.

House prices will rise, just not as fast as last year

House prices are widely expected to continue rising this year, but not at the jaw-dropping pace of 2021. The rise was alarming, said Olson, senior director and chief economist at Home Loans and Homebuying Platforms, which target buyers. To say “unprecedented” is not enough to describe it. It’s really crazy. According to the National Association of Realtors (NAR), the median home price in 2021 is $346,900, up 16.9% from 2020 and hitting a record high. A panel of economists convened by NAR forecasts that median home prices will grow 5.7% this year, while a panel of housing experts surveyed by Zillow expects prices to rise 6.6% in 2022. But what happens next will depend largely on how buyers and sellers react to changing markets. “If buyers end up hesitating about unaffordable prices, sales could drop,” said Jeff Tucker, senior economist at Zillow. But if homeowners eventually start selling their properties en masse, there could be a sales boom that could slow the pace of house price appreciation. “

Mortgage rates will rise

The average 30-year fixed-rate mortgage has risen sharply in the first few weeks of the year, reaching its highest level since the coronavirus pandemic in March 2020. The upward trend in interest rates is expected to continue, but not necessarily at the pace of the past few weeks. “We expect interest rates to rise this year, which will directly impact households’ affordability and ability to finance their homes,” said Luben, president of Wilmington Savings Fund Society Mortgage. “This shouldn’t kill the buyer’s market yet, but higher rates are expected to dampen slightly. Some.” The average rate on a 30-year fixed-rate mortgage was 3.56% in mid-January. The average for the same period last year was 2.77%.

Inventory will increase, but so will buyers

While the supply of homes for sale often ebbs and flows, it all seemed to be at a low point last year. “The past 18 months have gotten out of hand, and if you don’t pay attention, the market will immediately hit record high prices or record low inventory,” said Midler, president and CEO of the real estate company. “The market has lost its cyclicality.” But this year, the housing market is expected to Return to a normal seasonal cycle, with more listings in the spring and then tapering off in the summer. But competition will remain fierce: Experts say many buyers who have been making offers since last spring will continue to do so en masse, at least for the first half of the year. In the spring, demand will grow strongly, driven by rising interest rates, Midler said. Those waiting on the sidelines will re-enter the market when they see a surge in inventory.

Homes will continue to sell fast

Those looking to buy a home must act quickly. Many homes are booked out within days of being put on the market. Homes on the market last summer took just 17 days on average to sell, depending on price, according to NAR. Even in November, when sales were relatively slow, homes in the most popular $250,000 to $500,000 price range sold in an average of 10 days. In greater Washington, D.C., broker Chisholm said brokers often list homes on Thursdays, allowing buyers to view homes during weekend openings and then make offers by Tuesday night. Time is tight, and buyers are sure to be exhausted. What if you found your dream house, made an offer of more than $150,000 over the listed price and accepted all the downsides, but still can’t get it? And you have lost 5 offers before, and you have to pay 500 yuan for each viewing? Some of the buyers I’ve met have stepped back, but many are still looking for a home.

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