What to Expect This Homebuying Season
on Wednesday, May 25, 2022
Are you ready to make a move in 2022? Understanding what’s happening in the housing market can help you avoid surprises as you embark on your homebuying journey.
The short version:
Homebuyers are in for another year of stiff competition and rising prices. Luckily, there are things you can do to improve your chances of success.
The long version:
Expect competition to remain elevated this year, especially among first-time buyers and entry-level homes.
There simply aren’t enough homes for sale to meet demand. Even if more homeowners list their properties for sale soon, it won’t be enough to quench demand. Expect the house hunting phase to take longer, and be prepared for bidding wars.
Instead of competing with 10 to 20 other buyers for the same property, maybe [buyers] will be competing with 5 to 10. — Lawrence Yun, Chief Economist for the National Association of Realtors®
Higher home prices.
The lack of homes for sale will continue to drive up prices, which could squeeze some buyers out of the market. On a positive note, experts anticipate that home-price growth will slow from the double-digit pace we saw last year, rising at a much slower clip of 3% to 8%.1,2
Rising mortgage rates.
Mortgage rates have already surpassed pre-pandemic levels. Remember that as rates rise, the amount of home you can afford goes down, so don’t delay if you’re serious about buying this year.
Position Yourself to Win
Get pre-qualified and set your budget.
Before you start looking for homes, talk to a Mortgage Banker about getting pre-qualified so you can shop confidently and competitively.
Work with an experienced real estate pro.
A good agent can help speed up your home search, establish realistic expectations, and negotiate to get you the best deal.
Build your credit and your savings.
A higher credit score and down payment can land you a better mortgage rate, which can help keep your home purchase more affordable in a rising-rate environment.
Avoid buyer’s remorse.
Prepare a list of wants vs. must-haves so you can move quickly and dodge decision fatigue. But more importantly, know when to walk away from a deal.
Choosing the right mortgage team can make or break your homebuying experience. Our Northwest Bank Mortgage Team is here to guide you through every step of the process and help you choose the best financing option for your situation. We look forward to helping you! Contact a Mortgage Banker Today.