Housing Market Predictions For The End Of 2022
December 15, 2022
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As the year is quickly winding down, you might consider buying a property before 2023 begins, even if that means doing it during this winter season. Investing in housing requires proper preparation and thorough research.
So, keeping tabs on what is going on in the market before buying or selling is only understandable. Since the start of the Covid-19 pandemic, the real estate sector has seen a turn of events that have made it hard to predict the market. But the good thing is that housing forecasts never mislead.
If you are a first-time home buyer in the current market condition, you might still get lucky and get your dream home. Continue reading to learn how Ofirio experts predict the housing market will look at the end of 2022 and the beginning of 2023.
Real Estate Trends for 2022
Although there is little growth in the sustainable real estate market and the property supply that can spur inventory levels, there are still houses you can buy. And the market is still strong.
However, fasten your seat belt for the high home prices and mortgage rates. The sector is yet to find its balance between 2020 and 2021. Today’s real estate trends show buyers are less interested, unlike in 2021 when houses were getting several offers.
Instead, most opt for high-priced homes that are more desirable.
This rate of home sales is expected to slow for a long time into next year. Suzanne Hollander, a real estate attorney and professor at Florida International University in Miami, says that fewer buyers qualify for a mortgage, and sellers may also encounter high-interest rates if they decide to sell.
Home Prices and Mortgage rates
Compared to last year, home prices have grown by almost 18%. Experts mention that this might be due to housing supply shortages and work-from-home trends. Despite the cooling, prices will remain higher. The demand for homes is higher than the number of houses on the market, so the prices are likely to soften.
Two thousand twenty-two forecasts predict that interest rates will likely rise throughout the year and fall back by the end of 2022. This is your time if you are a prospective buyer willing to buy this season. Higher rates helped create a balance in real estate after the frenzy of the previous two years. Currently, there is increased inventory and improved housing prices.
Selma Hepp, the deputy chief economist at CoreLogic, says that high-interest rates and home prices will continue to make it hard for many people who want to buy a home.
However, buyer competition has fallen, and many sellers are reducing their asking prices. This is a huge help for buyers who may have been continually outbid in the early months of this year.
As a home buyer, you have to know if you can afford a house you want to buy before hitting the market. You can look up the price of a property you want to buy as you wait for your application to be approved.
December 2022 Predictions
According to Realtor.com, more than 45 million millennials plan to buy their first homes by the end of 2022. This is also likely to keep the prices of homes high. The Mortgage Bankers Association’s associate vice president of industry surveys and forecasts, Joel Kan, thinks that mortgage rates will stay close to where they are now through the fall and winter.
The reduced demand and buyer competition for houses could also free up some housing inventory and help moderate the rapid home price growth witnessed last year. This will lead to an improvement in home affordability and restore the real estate market.
In December, fewer buyers are interested in buying properties, and sellers have to put their listings on hold due to the cold and snow. Some experts also say the fall in prices and increased inventory are due to the holiday season.
However, come January and February 2023, newer properties will have hit the market, and it will mark the start of higher home prices to attract spring home buyers.
Home prices are unlikely to drop in the next few years. Currently, there is a housing supply shortage. Unless homes for sale increase and buyer competition decreases, prices will remain high. Freddie Mac says home prices will grow at a slower rate of 4% in 2023.
2023 Housing Market Forecast
Experts predict that real estate will either see a rise or slower home sales, while prices might soften to a 3% rate in 2023.
It is all about your readiness. Any time is a great time to buy a property, even with the current state of the housing market. All you have to do is put your finances in order and ensure you are debt-free.
For home sellers, now is the time to put that house on the market while the inventory is still low. Finding the best house or an agent isn’t easy.
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