After a couple of years of short demand and crazy high sales prices, everyone wants to know, what will the 2022 housing market look like?
While they are just predictions, here’s what the experts believe we will see as we enter the New Year.
Housing Prices will Increase
As we’ve seen with prices on just about everything lately, housing prices will increase with inflation too. Experts believe we’ll see an estimated 3% increase in home prices throughout the year.
This could affect affordability especially for first-time buyers, so it’s important to save as much money as possible for your down payment if 2022 is the year you plan to buy a home.
First-Time Homebuyer Demand will Increase
Millennials are the prime market for buying homes this year. We’ll likely see the largest demand from those ages 26 to 35, most of which have had plenty of time to save money for a down payment because of the higher prices and crazy bidding wars we saw that pushed millennials from the housing market the last couple of years.
Suburbs will be the Fastest Growing Markets
As we continue with remote jobs and entrepreneurship, millions of people will still migrate from the cities to more suburban areas. Until now, there’s been a lower demand for homes in the suburbs, but expect 2022 to be the year it gets a little more competitive in those areas.
Homebuyers Want Bigger Homes
Because most people work from home at least part-time, most people want bigger homes with plenty of room for everyone to spread out and do their thing rather than being crammed in tight spaces, as is the case in more urban areas.
Mortgage Rates may Increase
Experts also believe mortgage rates will increase, making it harder to afford a mortgage. Since rates have been so rock bottom low, though, they won’t see the heights we’ve seen in years past, but it’s an important metric to keep in mind as you create your housing budget.
How to Make the Most of Buying a House in 2022
If 2022 is the year you want to buy a house, here’s how to best prepare:
- Save money – Have a large down payment if possible. Even though many loan programs require just 3% down, you’ll have a much lower monthly payment with a larger down payment, making your loan more affordable.
- Think long-term – Buy the house that will last you and your family many years, and account for any changes such as working from home, having more kids, or even starting your own business.
- Get pre-approved – Always get pre-approved before shopping for a home. You’ll have a much better chance of winning the bid if there are multiple people interested in the property and you’ll know what you can afford.
- Work with a licensed real estate agent – Don’t try to navigate the housing market yourself in 2022. Having a real estate professional by your side ensures you’ll get the home you want this year.
2022 can be a great year to buy a home, especially here in the Lake Oconee area. Make sure you plan for the down payment, monthly costs, and even for the higher demand that can cause higher prices or bidding wars. Working with the right real estate agent is the best way to make 2022 the year you buy a home, give me a call today!