Things You Need To Know Before Buying a House in 2022

Описание: It was tough out there for home buyers in 2021. Shoppers scrambled to find properties and battled in bidding wars while prices shot up across the country. The Covid-19 pandemic upended the home-buying process. Historically-low mortgage rates coupled with an inventory shortage created a red hot market, with houses selling within hours of being listed, often for well over asking price. Economists expect the market in 2022 to be a tad gentler. But chasing the homeownership dream will still require strategy and stamina. No one knows exactly what the future has in store. But housing experts say that in 2022, buyers      can expect similar trends to the past two years: elevated prices, low inventory and fast turnaround.
That said, although it will continue to be a sellers’ market — home values are expected to increase by double-digital percentage points. With that in mind, here’s what you need to know if you plan to buy a house in 2022.

More buyers than homes for sale
Demand for housing isn't going anywhere. There's a huge shortage of housing, along with would-be buyers waiting to jump in. Many of them also have the flexibility to move and work from anywhere, taking advantage of the wide acceptance of remote work brought on by the pandemic. Even before the pandemic, there was low housing stock in the country. And Covid-19 supply chain troubles and a labor shortage have only made things worse. Though builders are trying to ramp up production, inventory will remain scarce. A healthy real estate market has about six months of unsold inventory. That means it would take six months for all the homes on the market to sell at the current sales rate. But unsold inventory nationwide was less than half of that in recent months, according to National Association of Realtors data, and even lower in sizzling markets. In fact, the number of homes actively listed for sale fell to a record low at the end of November. Though there will likely be more listings in the spring and summer, as is typical, it is unlikely there will be enough to meet demand. However, there is a glimmer of hope. Real estate industry groups expect the supply of for-sale homes to increase in 2022. According to Lawrence Yun, the National Association of Realtors' chief economist, "With more housing inventory to hit the market, the intense multiple offers will start to ease".
Home prices will rise, but not as quickly
Those hoping competition will slow in 2022 are out of luck. Economic trends including tight supply, elevated demand and low mortgage rates will continue to give sellers the upper hand. Home prices are expected to increase year-over-year but at a slower pace than in 2021. The National Association of Realtors projects home prices will increase just 2.8% in 2022, far less than the estimated 14.7% gain in 2021. Other experts' predictions vary, but the projected percentage gains are still in the single digits. Potential buyers can expect bidding wars on many homes, particularly in the spring and summer. While no one can predict exactly what will happen, the trends mean prices will continue to climb. In fact, economists predict home values will rise by 11% in 2022 — not as much growth as in 2021, but still substantial. Prices will rise most where cost of living is low. The urban exodus that defined so much of the pandemic will likely extend into 2022 as professionals continue to be liberated from the pricey metro areas where their jobs once compelled them to live. According to Steve Johnston, founder and CEO of Ideal Agent, "I expect to see inventory expand nationally, but we’ll see shortages in desired markets with buyers’ continued migration from the cities to the suburbs". For 2022, the competition amongst homebuyers in suburban and rural areas will be fierce. 
On top of this, mortgage rates are also expected to increase. With inventory far too low to meet demand throughout 2021, rental prices soared all year long. In 2022, renters can expect more of the same. Economists forecast that rates will increase in 2022, but it's important to keep that in context. Even if they go up as projected, they will still be fairly low.

Those are just TWO of the predictions for 2022. Watch the entire video to find out more!
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