2022 offers plenty of promising opportunities, especially in the housing market, with experts predicting rising home prices and continued high demand throughout the year. Following a rather hectic year with eager homebuyers and few homes, there is a probability that the housing shortage will continue but will ease soon enough.
Buyers are still looking forward to moving, but the shortage in the housing market in many areas in the United States contributes to increased prices. That said, selling your home in 2022 may be the right move since it remains a seller’s market that benefits many homeowners who choose to do so.
If you’re still undecided whether it’s a good choice to sell your house, you can consider a few options. You can either put your house for sale to seize the current demand and wait to see how inflation and interest rates play out concerning housing. Otherwise, you can also choose to remain in your home for the future as you see fit.
There are mainly three reasons why you should sell your home in 2022. During this year, there is an expectation of an increase in interest rates, though they will still remain relatively low. Moreover, selling your home in 2022 is a great time to take advantage of the constant growth in buyer demands and is also an ideal option, especially if you’re planning on moving some time now. It’s also important to get a quote for conveyancing beforehand so you can secure the best deal for your home.
This article will delve deeper into whether it’s ultimately the right move to put your home up for sale in 2022 and will also explore possible options alongside the necessary information you need to keep in mind along the way.
Increased Interest Rates Remain Low
Mortgage rates have historically remained low in range for many years now, even setting record lows during the pandemic crisis. Nonetheless, many experts project an increase in 2022. Many home sellers may deem this a downside; however, the rates will still continue to be fairly low compared to previous decades.
People nowadays will usually want to opt for low rates, considering the current situation. As of December 9 of last year, the average interest rate was approximately 3.1% for a fixed-rate, 30-year mortgage. Federal Reserve officials stated the likelihood of an interest rate hike this year, primarily occurring to combat inflation. Other than this, there are also speculations that the Fed will still wait until next year to escalate interest rates. These mortgage interest rates are often independent and can increase on their own, though they usually echo the drops and hikes that Fed establishes.
But despite the higher interest rates in 2022, they will remain relatively low. Realtor predicts that the mortgage rates will be at least 3.3% on average in 2022 and climb up to 3.^% toward its end.
While these low rates are enticing enough for a mortgage, there’s still the problem of a housing shortage on the market – more buyers are shopping for homes compared to available properties for sale. For this, you can generally expect a rise in home prices to balance out the low rates. Even though this can suppress buyer activity, it’s only minimal in effect since the demand continues to surge, which is why sellers in 2022 will be the receiving end of benefits brought by limited supply.
With a large pool of buyers, selling your home in 2022 may be a good choice since it nonetheless remains to be an active market, particularly due to increased demand.
High Buyer Demand
If you live in an area where bidding wars are a common occurrence, and home prices are rising fast, homes can very well witness a lot of buyer activity this year. This is especially true with entry-level prices, which are typically purchased by first-time homebuyers.
A report from Realtor that com projects a 12% appreciation over 2021, with median prices rising to 2.9% in 2022. While this statistic may not be elevating as fast or as high as it did compare to the previous year, there’s no doubt that buyer demand isn’t likely to be gone anytime soon.
Need for Moving
One of the reasons why you want to sell your home may be due to the necessity of moving. If you need to move, you can always sell your home and look for a new one. If you’re unemployed or have recently lost your job, you may be worried about paying your mortgage dues. In this case, selling will prove to be a viable option. For this, you can benefit from getting a quote for conveyancing, so you get the best offers.