What can you expect for the real estate market in 2022?

Another year has drawn to a close and here we are again with a fresh new start.

While last year was a doozy and we were all getting used to life in a pandemic, home prices soared and the crazy lack of housing inventory had buyers everywhere in a frenzy. So what is the real estate market shaping up to look like in 2022?

According to the California Association of Realtors(C.A.R.), interest rates and home values are predicted to continue to rise for the coming year. Additionally, as buyer demand remains high, there will continue to be a lack of inventory due to housing and new construction shortages, although more sellers are expected to enter the market in 2022 than the previous year.

So what does this mean for you?

If you’re looking to buy: While interest rates are on the rise, buyers today still have the advantage of historically low interest rates meaning you can qualify for a larger amount than borrowers of the past. Moreover, with more sellers coming to the market in 2022 there should be less competition overall than what buyers experienced in 2021.

For sellers: you will continue to have the upper hand in negotiations as we will continue to be in a seller’s market. And although home values are on the rise they are not expected to be increasing as drastically as they have the previous years. C.A.R. is predicting a 5.2% increase in home values in California for 2022.

For renters - unfortunately because of the lack of housing we should continue to see rents increasing for the coming future. However, it may be a good time to look into buying. With lenders now allowing lower down payments (this was not available at the beginning of the pandemic) and with incredibly low interest rates still available you may be able to qualify for more than you think.  In the long run, for most people, becoming a homeowner is one of the biggest steps you can make toward building your wealth and typically ends up saving you money over time.

Are you ready to get started with your home buying or selling process? We’re here for you!

Call Lauren today!