Whether you’re thinking about buying a home for your family or you’re a real estate investor, it’s important to keep the long game in mind. If you act too quickly or make a rash decision, you can end up with some major regrets — and financial problems.
This has been a wild year in real estate, with homes going for well above their listing prices. Listings barely hit the market before they’re snapped up or caught in bidding wars.
Is 2022 going to be any different? Maybe.
Buyers may be able to catch a break in 2022
It’s no secret that the real estate market went crazy in 2021 because demand exceeded supply, but 2022 could make things a bit easier for buyers. Here’s why:
- There may be more houses on the market. Between mid-2020 and early 2021, listing dropped almost in half — but there’s been a 25% increase in new listings between February and August. If the trend holds, that will help keep residential real estate prices under control.
- There may be fewer buyers out there. Some of the forces that drove people out of apartments and urban life and into the suburbs and one-family homes may ease a bit more, and that will likely reduce the number of buyers. As demand falls, prices will definitely stabilize.
- Home values will stop escalating. Freddie Mac has already predicted that home values will stop rising so fast. They expect to see a 5.3% gain in value in 2022, which only sounds like a lot until you compare it to the 12.1% gains seen in 2021.
If you’ve been frustrated by your inability to even get a bid in before every property you’re interested in buying is snapped up, take a deep breath and look to the future. The “seller’s market” won’t last forever. Just make sure that you have the appropriate legal guidance when it comes time to buy a home.