What’s the right way to win a bidding war?
Offering more money to win a bidding war might seem wise. But it’s not always the best choice.
Instead, see what terms you could tweak to pique the seller’s interest. Offering a type of financing that works with the seller’s motives is a fast way to set yourself apart from the competition.
In the last year, about 2.1 million new homeowners entered the scene. The better prepared you are for the year to come, the easier it’ll be to set yourself apart from the competition.
What 2022 housing market predictions do you need to know about? Read on to find out.
1. Less Competition With New Housing Market Supply
The 2022 housing market predictions are based on the competition in the housing market during the coronavirus pandemic. The perfect storm drove up the competition in the housing market during the start of the coronavirus pandemic. There was way too much demand and not enough houses to meet it.
There was also the issue of rising construction costs, making it even more challenging to get a new home. Now, as more places are becoming available on the market, you’ll begin to see that the competition is settling down. The housing market will still be a seller’s market, but it won’t be as fierce as in 2021.
If you find yourself in a bidding war, plan on being flexible. The more flexible you can be with your closing date, the easier it’ll be to set yourself apart from the rest of the competition. This will help give the sellers the time they need to find a new living location.
Being flexible with the closing date also allows the sellers to get their mortgage set up to complete the closing process.
Real Estate Market Trends
Are you up to date with the latest real estate market trends? Like the trend of getting a preapproval letter? A mortgage preapproval letter is an excellent way of letting real estate agents know that you’re on serious fire. You can find preapproval letters online through different mortgage lending companies. It’s also a great way to uncover the top probate real estate leads.
2. What About Real Estate High Mortgage Rates?
Can you expect the mortgage rates to go down in 2022? Not quite.
Interest rates on mortgages are predicted to go up in 2022. There could be as many as 3 different interest rate hikes throughout the year.
It’s unclear when the mortgage rates will rise, but they inevitably will. Rising mortgage rates can be good news if you have good credit. While you’ll be able to secure the best mortgage rate possible; your competition might not be so lucky.
The higher mortgage rates could knock out some of the competition, making it easier for you to find your dream home. We suggest doing your best to lock in the lowest mortgage rate possible when a new house hits the market.
New homes tend to hit the market in the spring. Set a notification on your phone so that you’ll know the minute of house becomes available.
You should also secure your mortgage rate now, before the feds raise the rates. You can even compare rates across mortgage lenders to find the best deal.
Just be careful about getting quotes. When comparing rates, make sure that they’re only doing a soft credit pool to not affect your overall credit score.
3. The Truth About Increasing Home Prices
Not only are mortgage rates going up, so are the values of homes. The home value growth chart for the United States shows that homes are rising.
Homes continue to increase in value at a moderate pace throughout the year. You can expect the housing market to begin to balance out as the home values steadily grow.
The price growth should align with consumer price inflation instead of being astronomical. Buyers might not get a great deal on the house, but they also don’t have to stress about rising prices.
In other words, the prices of homes are going up, but not exponentially. You can take your time finding the right house without having to worry about the prices getting out of your spending range.
4. Institutional Real Estate Market Trends
Thanks to the low-interest rate mortgage economy, retail investors have many opportunities. You can expect to see an increase in institutional real estate funds spreading throughout the market.
Business owners will be spending more capital in the hopes of obtaining top-yielding real estate. If you didn’t already know, investors make up a big part of the real estate market. We expect the number of institutional investors to continue to grow.
Wealthy foreigners are known for buying up homes and leaving them vacant. It’s a way of stashing their cash in a safe location, a real estate investment.
Instead of renting out the locations, these foreign investors prefer to assets untouched. As the border continues opening up, get ready for a tidal wave of money to pour in.
5. Remote Work and Affordable Housing
Are you working remotely? The increase of work from home flexibility is having a direct impact on the housing market. Affordable cities are quickly becoming highly expensive.
Many residents are now moving out of locations like California and New York in search of more affordable housing opportunities. On the other hand, well-paid workers are looking for luxury locations that they can work out of remotely.
The prices of homes have been soaring with some of the most insane bids. In some instances, people are willing to pay $100,000 over the asking price to get the house they want!
Buyers who can flex their economic muscles make things tricky for the local buying population. You can expect intense bid wars to still be a thing throughout the year. However, if you’re not trying to move to one of the most popular spots, the competition won’t be fierce.
Prepare With 2022 Housing Market Predictions
Learning about the 2022 housing market predictions will help you get ahead. Whether you’re looking to buy or sell your house, now you’re in a better position to make your move. Using the insights from this article, go ahead and decide when the best time would be to put your house up on the market.
If you’re looking to buy a home, start exploring ways to get mortgage preapproval letters, so real estate agents will know you’re serious. Every little step you take today will put you one step closer to your goal! For more tips, read another one of our posts.