Home News Where the Housing Market Is Headed in Summer 2022, According to Experts

Where the Housing Market Is Headed in Summer 2022, According to Experts

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Traditionally, spring real estate It’s the season, but buyers across the country have been waiting for summer to finally return to normal inventory levels, normal competition, and most importantly, normal prices.

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After all, it’s probably quite far from returning to normal, but the market for sellers, who have defined the real estate industry throughout the pandemic, is beginning to crack. Trench experts are seeing clear indicators that relief may be on the way — but will it be in time for the summer?

This is what they told GO Banking Rates.

“Return to sanity”

If you are a buyer, some promising signals indicate that the harsh real estate landscape that has irritated you for over a year is finally beginning to loosen. “The housing market is back in sane in the summer of 2022,” said Eyal Pasternak, a Miami-licensed realtor and founder. Liberty House Purchasing Group..

Pastel Nack discussed the relationship between pandemics and the high prices and low inventories that have defined the market ever since. “Currently, inventory is still being adjusted, so that aspect will not change overnight, but there are improvements,” Pastelnack said. “The housing market isn’t as high as last year, and this time buyers will have some power.”

Pastelnack expects the market to begin to favor buyers, or at least return to neutrality, by 2024. In the meantime, we expect prices to fall this summer as borrowing becomes more expensive and demand slows. “In the coming months, interest rates will rise indefinitely, cleaning up the market for unnecessary buyers,” he said.

It has already started. At the end of May, Redfin reported that one in five buyers was lowering prices. This is something that hasn’t been seen since October 2019.

If the price doesn’t go down, at least the rise will be less

Pastel Nack’s optimism is not groundless, but buyers should not be misunderstood. The market is not miraculously ripe.

“Currently, the supply of homes for sale is still very low,” said Bill Samuel, a full-time residential real estate developer in the Chicago area. Blue ladder development.. “About 58% less than the pre-pandemic level.”

Still, the needle is moving in the right direction. “Comparing the annual levels over the last decade, historically low inventories are still available, but slightly higher than in early 2021,” says Samuel.

In short, things are improving, but inventory shortages are still serious and can’t make a big difference this summer. Perhaps the best scenario is that prices will continue to rise, but will rise slowly.

“In my opinion, home prices will be valued higher than historical averages,” Samuel said. “That is, the housing market should generally expect a 5% to 7% rise, despite rising interest rates.”

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Samuel agrees with Pastel Nack. Rising prices will lower prices — just not in time for the summer.

“Rising interest rates will eventually slow down the housing market, but it will take some time before we can see the impact of rising interest rates on housing,” Samuel said. “There is a huge shortage of housing currently available, so higher prices will affect pricing and it will take some time for inventories to return to average past levels.”

“All real estate is local”

In reality, there is not one “market”, only the specific area where the next home will be located.

“Some real estate markets have already been modified after millions of people have moved and other major life changes have taken place in the last two years,” said Tomas Satas, founder of landlord and real estate investor. And CEO said. Windy City Home Buyer.. “Other markets will remain supported for the summer season and will see corrections as it cools.”

Founder of Bill Gusset Maximum real estate exposureNow, I’m seeing this dynamic play taking place on the ground.

“In some parts of the country, the tremendous momentum of last year slowed the pace,” Gusset said. “Inventory is starting to grow in these areas, and there are fewer bid wars where homes are sold for tens of thousands of dollars above the asking price. Not everywhere because all real estate is local. Maybe, for example, in the suburbs of Boston, the real estate market is still hot. “

One thing is certain: cash remains the king.

Prices are still high, inventories are still low, and in most places sellers can choose from the most lucrative buyers: those who have the money to make high bids, pay cash, or both.

“Remember that soaring home prices make it harder for everyone to become a homeowner,” he said. Agent advice The editorial board, author of “Top Producer Life,” and the youngest person on the Austin Business Journal’s Top 50 Agent List.

“So what’s important now is that only very wealthy people, or those who have saved for years, can buy a home. This trend will continue for the next few months. think.”

Details of GO Banking Rates

This article was originally GOBankingRates.com: According to experts, the housing market is heading for the summer of 2022

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