If you are a first-time home buyer in 2022, it's important to understand the current landscape of the housing market, so you can get the best deal on your dream home. Last year, home prices skyrocketed, but you shouldn't expect to see any extreme price jumps in 2022. However, mortgage rates and home prices will most likely continue to climb at a steady rate. If you are set on purchasing a home this year, here's what you need to know.
Competition Will Increase
In 2022, you need to be prepared to compete with other homebuyers. Many people who put off buying last year will be in the market for a home this season. Fortunately, the inventory of available homes is likely to increase. There were very few homes for sale at the end of last year, but 2022 is expected to bring an influx of available houses.
The high demand and low inventory have caused prices to drastically increase. Some homes went so high that realtors couldn't in good conscience encourage their clients to buy. If you aren't prepared to sign a contract quickly, you are going to get swallowed up by buyers, more eager buyers.
Selling is Still Moving Fast
Some homes are selling in as little as ten days. Buyers are getting exhausted by how fast homes are slipping through their fingers. Many are tired of shelling out hundreds of dollars for home inspections and forgoing all stipulations just for the house to be sold to someone else. Including an escalation cap can help buyers tremendously.
It can be tempting to make hasty decisions when homes are disappearing from the market so quickly, but you don't want to settle for a home that's not so great or blow your budget. If you are getting burned out, you may need to take a break from buying and come back with a clear mind. Shopping for a home can be a full-time job these days.
Final Thoughts on Buying a Home in 2022
It is truly a seller's market. With mortgage rates continuing to rise and homes still selling like hotcakes, many experts are concerned that buyers will pay more than they can afford just to close on a home. If you are looking to become a homeowner this year, stay mindful of your budget and be patient while you wait for a home that is suited to your wants, needs, and financial situation.
