There is no doubt the last few years have been crazy in the real state market. Propert prices have been on the rise since 2012, for different reasons, but then the pandemic in 2020 and 2021, made prices skyrocket even more.
Buy a house in 2022 is not the same as it was 10 years ago, so we have to assume the new status quo of the market and not let the numbers wreck our dreams of homeownership.
The high increase in buyers’ demand in the real state market was the result of several factors. Due to the pandemic in 2020, the market froze for several months, which left many people that wanted to buy or sell, postponing their plans. Many lost their jobs or had to spend their savings on a down payment. Others were simply scared off by the market and decided it wasn´t a good time to make a move.
Many people entered the market 2021, thanks to low interest rates on mortgages. However, the real estate inventory shortage led to even higher buyer demand.
Is THIS a Good Year to Buy Your HoME?
All of the factors that affected the market in 2021 make us wonder if 2022 is a good year to buy a house.
The average interest rate on mortgage loans in the last year went down to a historical 2.65%, according to Freddie Mac. Now, buying a house 2022 could be different because interest rates have increased during the first three months of the year. Nevertheless, you need to keep in mind that the rate you qualify for is dependent on factors such as your credit score, debt-to-income (DTI), loan-to-value ratio (LTV), and your steady income.
Experts say that the low inventory/high demand scenario, which originated with the huge home price increases last year, will become more balanced later in 2022.
Even with interest rates increasing and the current high demand, it can still be a good time to buy a home.
Should You Buy a House THIS 2022?
If you are renting right now, that means you are currently paying a lot of money for a house that will never be yours, so that´s already one reason to buy a house, even if the current market makes it not the ideal time to buy.
According to statistics, rents have been rising. Last year, the average rent increased by about 14%, and in cities like Austin, Miami, and New York, rents increased by a whopping 40%.
This will not change in 2022, and according to a report released by the Federal Reserve Bank of New York, rent prices will be 10% higher in 2022 compared to 2021. So this means you will be paying more for your rent than you would if you owned a home and paid a mortgage.
When is a Good Time to Buy a HoME THIS 2022?
If we look at 2022 predictions, a lot of experts say that the best time to buy in 2022 will be in the months to come. In the first three months of the year, the balance between demand and inventory was still very much like it was in 2021.
They say it will take at least two years to normalize again, so it will depend on the city were you live, as not all the cities are showing the same rates.
So the best thing to do is explore the market in the city you want to buy your house and then make the best decision. Also, it depends on your personal situation, like if you can qualify for a loan.
One good piece of advice is to have an open mind about where you buy and the type of home you purchase. For instance, maybe you could buy a nice apartment or condo instead of a house, then upgrade to a house in a few years.
And if you want to buy a house, but you don’t qualify for a bank loan, don´t hesitate to contact our team for alternative home financing that could be the best fit for your situation.
Should I Sell My House in 2022?
If you are a homeowner and want to know if now is a good time to sell your property, there’s a few things to consider.
First off, the rise of the real state prices reached a stunning 20% in some areas. If you want to buy another house, you must keep that in mind. You’ll need to calculate how much you’ve been paying for your current mortgage and how much equity you have in your home.
If you’ve been making mortgage payments for at least 10 years, then you probably have enough capital to make a sizeable down payment on your next home, which would make the loan on your new home more affordable with lower monthly payments.