The housing market can be somewhat of a mystery to those outside the industry. This can make it difficult to understand when to buy or sell without the help of a professional. Despite the value of having a trusted professional by your side as you navigate the world of real estate, it’s important to understand some of the current information. Below you will find the housing market predictions for 2022 so you know how to strategize your next few years.
Housing Market Predictions for 2022
For many, the housing market comes with a lot of questions. Should I buy now? Should I sell now? Will there be a crash, and if so, when? Below are some helpful predictions for 2022 when it comes to the housing market.
- Low Inventory: Likely the most accurate and widely known prediction is that there will not be a lot of inventory on the housing market. The spring and summer are often a hot time to list homes, but even then, the amount of homes on the market will not meet the demand of buyers.
- Hot Market for Sellers: If you are considering selling your home in 2022, you are on the right track for a fast sale. Housing experts predict that homes will sell for much higher than asking price due to the low inventory on the market. Because of the state of the housing market, the turnaround time for selling a home will be much faster.
- High Mortgage Rates: Mortgage rates have been steadily increasing and there is no clear end in sight. In fact, mortgage rates increased much faster than many housing experts predicted. The average 30-year fixed mortgage rate is 4.3%, which means you’ll pay over $489 or more per month in principal and interest for every $100,000 you borrow. This is much higher as compared to recent years, but it is not a historical record by any means.
Housing Market Crashes
The housing market was red hot in 2021, which has led many people to believe there will be a crash in 2022. Over the last year, home prices have rose more than 18%. This is the largest uptick in price over a one-year period since the 2088 housing crash. This increase has not hit its peak yet as many housing experts predict that number will increase to 22% by May of 2022. While this may lead you to believe that a housing market crash is near, it’s not certain.
Housing bubbles are temporary periods (usually months, but sometimes years) where there is a high demand, low inventory, and inflation. Housing bubbles are caused by a number of factors. Some include a bustling economy, low mortgage interest rates, and easy access to credit. When these bubbles get too big, they can pop. This is often referred to as a “crash.” You may wonder, what leads to a crash? A crash can be caused by a number of factors, including a drop in demand, high interest rates, and even an economic downturn. With that being said, there are no clear indicators that a housing crash is near in 2022. However, pay close attention to the market trends in the upcoming years if you are considering buying or selling.
The Current Housing Market and Foreclosure
The last few years have come with a lot of uncertainty. The financial health of many families has been impacted by job loss, medical bills, and a number of other factors. Financial trouble can make paying for your mortgage difficult. In fact, foreclosures have been increasing over the last seven consecutive months. If you are experiencing financial difficulties, foreclosure prevention in Los Angeles is necessary to ensure the long-term success of your financial future. There are options for those who cannot afford to pay their mortgage. Short sale help for realtors can help you stay out of the foreclosure process and get your house sold swiftly. Contact Apex Resolutions today for support as they have a team of trusted experts ready to help you get on the right track.