Out With The Old, In With The New!

2022 is officially here. What does this mean for the real estate market? Many have asked us what we think is going to happen in 2022. Here are our predictions. 

We often hear from buyers wanting to know if now is a good time to buy, or if we think the market is going to crash like in 2008. The short answer is no, we don’t think the market is going to crash. There are several differences between now and what happened in 2008. Most notably is the way mortgages are made. In 2008 and prior lots of mortgages were made with no stated income and banks using their favorite appraisers. None of that occurs in 2021/2022. Appraisals are done by 3rd party appraisal management companies, and lenders have actual debt to income ratio guidelines to make sure that buyers aren’t over-leveraging themselves.

Now back to the current market. As we enter 2022 the interest rates still remain insanely low. For this reason we fully expect buyers to continue competing in multiple offers and sellers to make more money on their homes as appreciation rises. Even though you may end up paying slightly more for a house, the low rates still make it a good time to buy. The government announced several planned rate increases this coming year. If mortgage rates rise and cause housing prices to slow down, or even level off, a .5% increase in interest rates could cause a 25,000-50,000 swing in your buying power. For the same payment, you’ll have to buy a cheaper home.

We’ve made it easier to buy a home without competing!

We have systems in place to help our buyers find off-market properties to make offers on. This allows our buyers to tell us their favorite neighborhoods, so we can go out and find a house that’s not actively listed for sale, to make an offer on without having to bid 10s of thousands of dollars over asking price, while waiving all common contingencies.

If you’re looking to make a move this year, or if you know someone else looking to make a move; please have them give us a call. With our recent move to Coldwell Banker this year, we have more tools than ever to help our clients!

We are grateful for your support in 2021 and look forward to helping you with your real estate needs in 2022 and beyond!