What are 3 factors that could slow the real estate market down in 2022?
Bryan Vogt here. The market is still going crazy for sellers and hopefully, that will continue! For buyers. Interest rates are still extremely low giving them amazing buying power in the marketplace! However, there are three factors that sellers and buyers should be aware of in the months ahead that could change all of that! Let’s dig in!
1. Interest rates You have probably heard they have already gone up half a point and rumors are they are going up to a full point sooner rather than later! What this means to you as a seller is that you are going to start losing the number of buyers you had before. Depending on price point. A full point can have a dramatic effect on what price buyers can buy reducing your chances of multiple offers dramatically and could extend the time your home is on the market! If you’re a buyer. You will still be able to get a nice home but the thousands of dollars of savings you would of had with the low historic interest rates may start to slip away if rates continue to rise!
2. More competition Where are going on our third year of people feeling stuck at where there living. With that in mind, it is hard for me to believe that we are not going to see more competition in all price points in the housing market by this spring! For sellers, more competition means multiple offers would be the first thing to go! And depending on how many people decide to sell, which could be a lot considering the 3-year wait. We will likely change the time on the market from days into weeks or maybe even a little longer before the house sells! For buyers, waiting for the spring market because of the rise of interest rates. You may not be able to afford to buy the home that you wanted. Of course, you will still be able to buy a home. It just may not be as big, have as big of the yard, or have all the bells and whistles that you wanted. So, if you are looking to buy a home this year sooner rather than later might be your new mantra to get the home of your dreams!
3. Inflation It’s a wild card! It’s no secret to most that even if you don’t know exactly what the rate is you know you are paying more for just about everything! Whether it’s at the grocery store or at the gas pump it affects people’s pocketbooks! And in January of this year, we had the largest spike in inflation in almost 40 years. What does this mean for sellers? If this trend continues sellers in the very near future could lose even more buyers especially in the luxury market. Understand there is probably still a hundred buyers for 100 thousand home currently. But that number decreases dramatically the higher the price of the home is! For sellers, if record-breaking inflation continues would make it harder for sellers to maintain their prices. For buyers, it could mean it could even knock out more features they were looking to have in their new home
So, what is the bottom line? If you are looking to buy or sell this year. It would be advisable to take action now or in the very near future to take advantage of the crazy market where there are still multiply offers to be had and homes selling in days not weeks! And if you are looking to sell or even thinking about it. I highly recommend clicking on the link below. Fill out some information to get a free copy of my Amazon best-selling book Ready Set Sold! And read Chapter One. When should I put my home on the market? Don’t wait to get my free book! Do it today!
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Until the next episode. Make it a great day!