New home buyers in 2021 found the purchasing terrain challenging to negotiate. There are indications that 2022 will remain just as difficult for those trying to get a hold of their dream home.
However, you can potentially overcome current sellers’ market conditions by learning more about economic trends and how to take advantage of the current historic low-interest rates. Learn more in this guide.
Why the Market Currently Favors Sellers
One of the main reasons for the current seller’s market has been a lack of inventory, and for the initial part of 2022, it doesn’t appear to be changing. Partnering with professionals like Overland Park Mortgage Lenders can help ideal for getting the mortgage you need, but finding a house is a whole other matter when there’s so little for sale.
With so little inventory, buyers are willing to pay top dollar for what would have been an undesirable home before, and properties are flying off the market. This means sellers can price their properties higher than ever and still expect a quick close.
Is the Market Getting Better for Buyers?
There is some good news about how the economy has improved at this point in 2022, at least from the unemployment perspective. However, inflation is increasing at a greater rate than it has in years, which adds to potential home buyers’ woes. Although there’s no real reason to suspect that there will be a substantial increase in the housing inventory during the first part of 2022, this could change later in the year.
If the pandemic wanes and current economic improvements continue, there may be an increase in housing inventory in the latter part of 2022. This isn’t stopping everybody from listing homes, and although they may be scarce in some places, more than in other years, housing is still available in many areas.
Although there have been some different economic improvements, the state of the world and the pandemic are putting a kibosh on many people’s dream home plans. This is unfortunate because current interest rates are at historic lows.
Finding Hope in Low-Interest Rates
If you can find a home to buy in today’s housing market, this is one of the best times that there has ever been to do so. For those interested in getting a new home, the interest rate of loans is one of the most significant factors determining your monthly mortgage payment.
Experts have predicted that the average interest rate on a 30-year fixed loan will rise to only 3.77% in 2022. Currently, the average interest rate is 3.3%. The rate of 3.77% is still very low, and no one knows if it will remain at this low level for very long.
With the incredibly low rates today, you may put as little as 3% to 5% down and get a better, bigger house in the bargain. And you can still have an affordable monthly mortgage payment. There are also down payment assistance programs that can take the bite out of buying a new home that, when coupled with a low-interest rate, can make buying a home possible.
Is Now the Time to Buy?
Finding a way out of the chaos of economic and global problems is a challenge for anyone in 2022, but there are some encouraging signs. For the time being, although it is not a buyer’s market per se and housing is very slim compared to other years, wise homebuyers who want to save thousands of dollars will take advantage of the current low-interest rates before they rise again.
If you have the opportunity, now may be the time to jump into homeownership.