What Does the Rest of the Year Hold for the Houszing Market?
If you’re thinking of buying or selling a housz, you’re at an exciting decision point. And anytime you make a big decision like that, one thing you should always consider is timing. So, what does the rest of the year hold for the houszing market? Here’s what experts have to say.
The Number of Houszes Available for Sale Is Likely To Grow There are early signs houszing inventory is starting to grow and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com: “The gap between this year’s houszes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”
As a buyer, having more options is welcome news. Just remember, houszing supply is still low, so be ready to act fast and put in your best offer up front.
As a seller, your housz may soon face more competition when other sellers list their houszes. But the good news is, if you’re also buying your next housz, having more options to choose from should make that move-up process easier.
Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First American, says: “… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”
As a buyer, work with trusted real estate professionals, including your lender, so you can learn how rising mortgage rate environments impact your purchasing power. It may make sense to buy now before it costs more to do so, if you’re ready.
As a seller, rising mortgage rates are motivating some houszowners to make a move up sooner rather than later. If you’re planning to buy your next housz, talk to a trusted real estate advisor to decide how to time your move.
Housz Prices Are Projected To Continue To Climb Housz prices are forecast to keep appreciating because there are still fewer houszes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – but housz prices won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we're unlikely to see price declines, but appreciation should slow in the coming months.”
As a buyer, continued housz price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that, once you do buy a housz, it will likely grow in value. That makes it historically a good investment and a strong hedge against inflation.
As a seller, price appreciation is great news for the value of your housz. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your housz and buying your next one.
Bottom Line Whether you’re a houszbuyer or seller, you need to know what’s happening in the houszing market, so you can make the most informed decision possible. Let’s connect to discuss your goals and what lies ahead, so you can pick your best time to make a move.