What Does the Rest of the Year Hold for the Housing Market?
If you’re thinking ofbuyingorsellinga house, 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 housing market? Here’s what experts have to say.
The Number of Homes Available for Sale Is Likely To Grow
There are early signshousing inventoryis starting to grow and experts say that should continue in the months ahead.Accordingto Danielle Hale, Chief Economist atrealtor.com:
“The gap between this year’s homes 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 tocontinue,. . .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, housing supply is still low, so be ready to act fast and put in yourbest offerup front.
As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, 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 agreeinflationshould continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist atFirst 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 yourpurchasing power. It may make sense to buy now before it costs more to do so, if you’re ready.
As a seller, risingmortgage ratesare motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a trusted real estate advisor to decide how to time your move.
Home Prices Are Projected To Continue To Climb
Home pricesare forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – buthome priceswon’t fall. Lawrence Yun, Chief Economist at theNational 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 home 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 home, it will likely grow in value. That makes it historically a good investment and a strong hedge againstinflation.
As a seller, price appreciation is great news for the value of your home. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your house and buying your next one.
Whether you’re a homebuyer or seller, you need to know what’s happening in the housing market, so you can make the mostinformed decisionpossible. Let’s connect to discuss your goals and what lies ahead, so you can pick your best time to make a move.
Author:Charles Chapman Phone: 240-351-8214 Dated: May 31st 2022 Views: 18 About Charles: Charles Chapman has more than 25 years' experience in the Montgomery County real estate market. He h...
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Charles Chapman has more than 25 years' experience in the Montgomery County real estate market. He has been a full-time agent through rising markets and good times, and also through falling markets and bad times. Being a native Marylander, he has a wealth of knowledge about the area. He faithfully represents his clients, both buyers and sellers, and guides them safely through what may be the largest and most emotional purchase or sale of their lives. He brought his partner Debbie Browne to work with him over 20 years ago, and together they are an exceptional team. Big-picture overview plus attention to detail, combined with in-depth knowledge and outstanding customer service, make for a streamlined process.