No matter where you live in the country, the real estate sector has been experiencing interesting trends in recent months. As such, those who are not exactly in tune with the industry may be feeling confused and reluctant to buy or sell out of fear of making the wrong move. Either way, here is a list of real estate predictions for 2022 that are bound to get you headed in the right direction.
Interest Rates
One of the top predictions for real estate in 2022 involves interest rates. In particular, due to the fact that the Federal Reserve accelerated the wind-down of their bond purchasing to respond to inflation issues, they are now in a position to begin raising interest rates early this year. So far, the general consensus is a median of 3 quarter-point hikes with 4 a possibility. This will likely result in a significant jump in housing costs which the average consumer can’t afford. This is especially the case given the overall high unemployment rates and the fact that pay rates are not rising nearly as fast as the cost of housing. Either way, this has resulted in bidding wars for homes of all shapes, sizes, and conditions.
Inflation
One of the most apparent predictions for the real estate market in 2022 is the continued rise of inflation rates. In fact, inflation rates are the highest they have been in over 30 years, with no signs of slowing down. Moreover, although experts assert that the supply will soon catch up with the demand and consumers will soon get a “break” from inflation, there are no signs that the housing market issues will follow suit.
In particular, housing prices will continue to climb, which will also result in the average person paying higher rent. Generally speaking, the fact that rent is drastically rising is prompting more people to become homeowners rather than renters. Moreover, since the housing market is so competitive, this is also causing the cost of owning a home to increase.
In keeping with that notion, since the inflation rates are causing costs to rise, this is also causing us all to have to pay more for goods and services. So, despite the fact that many companies are paying more, these increases are arguably being spent on staple goods and services. So, for instance, if you are a working mom who just received a raise during the pandemic, it is likely that most of your pay increase will go towards gas, daycare, etc.
Ready to Buy a Home
Overall, the state of the housing market is unlike anything we’ve seen in recent years. Nevertheless, purchasing your dream home is still entirely possible. No matter if you need a home loan or simply need assistance overcoming a potential enclosure, your friends here at the Barrett Financial Group are here to help. There is no need to lose your home or miss out on the home you are seeking. Here at Barrett Financial Group, we go above and beyond to assist all our customers and ensure their total satisfaction. Contact us today for a quote and more information.
