Interest rates in 2022
Interest rates are more than likely on the rise in 2022. Which, for new homebuyers, could be better news than not. Even a small rise in interest rates (like what we’re expecting in 2022) is going to be felt more by speculative (investment) buyers. Speculative buyers are less likely to be making offers as there’s less profit to be made. And while hi increase will still affect primary home buyers, it’s not going to as much.
Housing market inventory in 2022
Inventory in 2022 for the housing market is going to remain scarce. The effects of the shift that occurred in 2020 with the Covic-19 Pandemic are still being felt and are expected to take at least through this year to stabilize. The US is still short nearly 4million single-family homes of the demand, and while new builds are back on the rise it’s not enough to make up for that gap.
The 2022 housing bubble burst
The 2022 housing market isn’t a bubble…yet. The Wall Street Journal puts it very well when they say that the 2021 market absolutely wasn’t a bubble, 2022 probably isn’t a bubble, but by this time next year that might not be the case.
What the housing market looks like for buyers
2022 looks to be a tough year for people looking to buy a new home. This is going to be a problem especially for new buyers trying to enter the market for the first time. A lot of millennials in particular trying to enter the market are getting edged out by these rapidly increasing prices. Towards the end of the year and into 2023 things should begin to level out and become much more sustainable.
Ready to close?
When you’re ready to close on your house come see us! At Frank B. Pallotta Law we have more than 20 years of experience helping our Georgia clients navigate the closing process. We understand that each client is different, each situation is different, and that you need our full attention. When the time comes to close, put your faith in us!