Does it make more sense to buy now or wait?
Are you a buyer who is frustrated by our current real estate market? We’re seeing three distinctive trends in today’s market:
1. Sellers who are very happy selling their homes quickly and for top dollar.
2. Sellers who want to sell but are apprehensive because they haven’t identified a replacement property.
3. Buyers who’ve decided to sit on the sidelines because they’d rather work in cooler market conditions.
If you’re a buyer, does sitting on the sidelines make sense? Interest rates are still at historical lows, hovering around 3%. As Doug Duncan, the chief economist at Fannie Mae put it, “Right now, we forecast mortgage rates to average 3.3% in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.”
Mortgage rates are not the only things that are on the rise for next year; home price appreciation is expected to increase as well. At 1:30 in the video above, you’ll see a graph that shows what the top six economic experts predict for home price appreciation. The average forecast is a 5.1% increase. That makes it mission-critical for buyers to get in the market before interest rates increase and the market continues to appreciate in 2022.
What does that mean for the rate of sales in 2022? At 2:12 in the video above, you’ll see another chart that shows what four major forecasters predict for home sales next year. Fannie Mae, Freddie Mac, NAR, and MBA expect between 6.7 million and 6.9 million homes to be sold this year, and next year should be even healthier, with 6.6 million to 7.5 million homes being sold. That’s significant because in 2020, we sold 6.5 million homes, which was a record year.
All this data shows us that 2022 is shaping up to be another very strong year in housing. If you want to get a great deal on a house, it’s important to do it before interest rates rise and appreciation continues.
If you’d like some assistance in finding the perfect home in our desert area, we are poised and ready to help you. We’ve helped many buyers find and secure homes here. If you’re looking to downsize or increase your square footage, we’re happy to help you on the selling side as well. Please feel free to give us a call, a text, or an email. Hope to hear from you soon!