The U.S. housing market had a record-breaking year in 2021. It remained a competitive seller’s market, mortgage rates hit record lows, and there was more interest in relocating to new cities across the country than ever before. As we enter the new year, the housing market has already started off with a record-low number of homes for sale. However, the good news is we’repredicting a more balanced housing market in 2022. As you prepare to buy a home this year, it’s important to familiarize yourself with how the market is predicted to move so you can decide when the best time will be for you to buy a house.
The homebuying season will begin by late January
The homebuying season typically begins in the late spring, but it’s expected to start much earlier this year. Buyers are looking to take advantage of record-low mortgage rates before they rise later in the year.
Expect a more balanced market, but not necessarily a buyer’s market
If you began your home search last year, you’ve likely noticed that it remains a competitive seller’s market with a limited selection of homes. Luckily, in 2022, buyers can expect more selection and slower home price growth with a much-needed increase in new construction homes toward the second half of the year.
Mortgage rates will increase, which will slow down home price growth
Redfin expects 30-year fixed mortgage rates to increase to 3.6% by the end of 2022. This increase combined with higher home prices will likely slow home price growth to 3%, which is great news for buyers – especially first-time homebuyers that may have feared another year of increased home price growth.
Is now a good time to buy a home?
Whether or not it’s a good time to buy a home will depend on where you’re looking to buy and, of course, your individual situation. For homebuyers looking to take advantage of lower mortgage rates before they rise, now may be the best time for you to buy a home. However, if you want a wider variety of homes to choose from, it could be wise to wait further into the year. To best prepare yourself for the 2022 homebuying season, read on to find out what you need to buy a house this year.