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Though the 2022 housing market will largely be defined by low inventory and double-digit home value gains extending from the previous year, experts predict a slightly more subdued home buying process ahead. Inventory reached a record low at the end of November, but more listings will pop up in the spring to meet rising demand into peak buying season.
Prices will continue to climb as a result of limited supply, elevated demand, and fluctuating mortgage rates, but home values are expected to grow at a much slower rate than in 2021. First-time buyers, however, will still be at a disadvantage when competing with older demographics for less affordable starter homes, says CNBC Make It.
“When buying a home in the next year or longer, it will be important to watch new listings, including ‘coming soon’ listings, and be very prepared to not only visit the home quickly, but prepare to decide and extend an offer almost immediately,” Glenn Phillips, CEO and lead economic analyst for Lake Homes Realty, previously told CNBC Make It.
That said, don’t overpay. Prices will be up, but that doesn’t mean to take something outside of what’s reasonable for your budget.
Compare home prices from the prior year in your local area to the listings you are currently considering. If the same type of house is listed for significantly more, it makes more sense to wait for something else.
