Is Now a Good Time to Buy a House? Why Home Buyers Should Buy Now!
After living through a housing market like we saw in 2021, a lot of would-be homebuyers are asking a valid question: “Is now a good time to buy a house?” The increased prices of homes in 2021 have people scared to even think about purchasing in 2022 – but should they be? Is it better to wait until home prices drop? Will mortgage rates go down in 2022? These are reasonable questions to consider before making a big decision like a home purchase. Here are a few points to consider about why now is actually the time to buy.
You Might be Waiting a Long Time to Buy
Even the best of real estate experts and those who have known the industry for decades have trouble predicting the market in years to come with 100% accuracy. Seasoned professionals are qualified to look at the data and make educated predictions, but in reality, it’s impossible to know exactly what will happen. There are too many external variables in this world – a prime example being a global pandemic!
All this to say, you could be waiting a LONG time to buy if you’re holding out for the housing market to drop. With that being said, current statistics show waiting might not be the best indicator of success in finding a lower-priced home, because who knows what the market will do in years to come. The longer you wait, the more you miss out on building equity in your investment and starting your next life chapter in your new home.
Will Home Prices Drop in 2022?
One of the main causes of the increased home prices of 2021 was the high demand for houses and the lack of available homes for purchase. As the millennial generation reached the home-buying age, the demand for homes skyrocketed and the housing market inventory simply couldn’t keep up with demand. Pair that with the difficulties of a global pandemic and its negative effects on the supply chain, and you have the perfect storm for bidding wars on available homes. If you’re on the selling side of the transaction, this is great news and one of the benefits of making a move right now.
Currently, the demand for homes remains high and in most markets across the country, the inventory remains low, though slowly rising. This would indicate that housing prices aren’t going to drop in the near future, even if the madness of bidding wars dissolves a bit. Additionally, though we might not see home prices rise quite as rapidly as they did last year (a 20% increase!), there’s still likely to be a small increase in 2022.
Rent Prices Across the Country are Rising
Average monthly rent did not escape the rising housing tide. According to statistics released from Realtor.com, by June of 2021, rental prices in 44 of the 50 largest markets across the country were at the highest they’ve ever been. Most renters are paying an average of $1,500 a month toward property on which they will never see a return, rather than a home in which they are building equity. For renters who find themselves in a position to buy, there’s never been a better reason to do so.
Mortgage Rates will Continue to Rise
After we saw mortgage rates drop to a historic low in the last year, in recent months we’ve also seen them subtly rise. Rates are expected to continue to increase from where they’re currently at, though not at alarming rates. However, this steady rise will still affect some buyer’s ability to purchase in the coming months. It’s wise to do the math upfront and calculate the savings a lower mortgage interest rate will afford a buyer, despite potentially paying higher prices for a home in today’s housing market. Rising rates also mean lenders are getting pickier with who they’re approving for loans, much more than in past years. If you’re in a position to do so, now is the time to take advantage of the current mortgage interest rates.
Contact a Reputable Professional
In reality, it’s important to remember that it’s impossible to predict the housing market with 100% accuracy. Purchasing a home in 2022 is a personal decision that should be thought through carefully and with the right people by your side. To contact a seasoned, knowledgeable, reputable professional and Brevard’s best Realtor, reach out to Misty Morrison today.