If you have been following the trends from last year, "busy" doesn't even begin to describe how things went down. The homebuying season of 2021 saw record-breaking bidding wars, high home prices, and record-low inventory levels. What is the outlook for 2022? The spring homebuying season this year should be filled with lots of excitement.
Strong demand
The millennial generation continues to enter its peak home-buying years. Twenty-five million millennials will be 26 to 35 years old in 2022, making them prime homebuying age. First-time buyers will therefore face more competition, and the level of competition will remain high, especially among entry-level homes this spring.
Low inventory
Before the pandemic, an inventory shortage in housing was an ongoing problem. Over the past two years, labor shortages and supply chain issues have exacerbated the housing crisis. We may see a slight increase in inventory during the spring and summer months, but it will not suffice to quench the demand. There is a possibility that more bidding wars will ensue, but we won't likely see the frenzy we saw last spring.
Rising mortgage rates
Rock-bottom interest rates appear to be a thing of the past. Rates have already exceeded pre-pandemic levels, and mortgage rates are likely to rise in the future, especially since the Federal Reserve plans to increase short-term interest rates multiple times this year to curb inflation. However, historically speaking, mortgage interest rates are still extremely low. Additionally, though higher rates may lower your buying power, they are also likely to ease the pace of home-price growth further by easing demand.
Home equity growth
Increasing home prices may pose a challenge to buyers, but they have been a boon to homeowners. We will likely see a greater number of homeowners take advantage of the record-high level of home equity this spring by making home improvements and listing their homes for sale to take advantage of the profits.
Tips If you’re Buying a Home This Spring
Get pre-qualified and set your budget
Be sure to get pre-qualified for a mortgage before you start looking for homes. Knowing how much you can afford will allow you to shop confidently and competitively.
Work with an experienced real estate pro
Good agents can speed up the home search process and provide information about neighborhoods and listings you may not have found otherwise. They can also establish realistic expectations and negotiate on your behalf to make sure you get the best deal possible. Build
Avoid buyer’s remorse
You should list wants versus must-haves to move quickly and avoid getting overwhelmed. But know when to walk away from a deal.
Tips If You’re Selling a Home This Spring
Hire a local real estate agent
If you want to sell a home in your neighborhood, you should work with someone who knows the local market.
Make repairs now
Repairs and upgrades may take longer to complete during a labor and supply shortage. Do your repairs, and talk to your agent about which projects are essential and which ones you should skip.
Be prepared to act fast
You may receive multiple offers within a short period of time, possibly even the same day, based on how hot the market is in your area. Determine ahead of time what terms are most important to you so you can compare offers quickly and make an informed decision.
When you need expert real estate advice turn to Oklahoma Landsource. From land for sale in Oklahoma to homes for sale in OK, Oklahoma Landsource if your go-to realty site!
