Summer 2022 homebuying season is here, and experts predict it to be a busy one. But slightly cooler than the hot spring season.
SUMMER 2022 HOMEBUYING SEASON PREVIEW
Main Takeaways for Buyers
- It’s expected to be a strong seller’s market, but cooler than what it has been.
- Home prices aren’t forecast to drop, but are likely to rise at a slower pace.
- Real estate trends are local. Work with an agent that is knowledgeable in the areas you want to purchase or where you’re selling your home.
- To avoid house buying FOMO (fear of missing out) and panic buying, know what you can afford and stick to a realistic budget.
Main Takeaways for Sellers
- It will still be a strong seller’s market, but not as intense as it was earlier this year with a smaller likelihood of a bidding war driving up your sale price.
- Get ahead of preparing to sell your home. A local agent can help decide what repairs and upgrades could help with the sale.
- Some markets, or sub-markets, may be stronger or weaker than others.
Homebuyers haven’t had an easy go of it the past few years, but there are signs the peak seller’s market is behind us.
This past spring homebuying season, we’ve seen skyrocketing mortgage rates and rising home values. Both have increased the costs to purchase and own a home. “What we are likely to see is that fewer buyers will be able to afford this housing market,” says Dr. Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors. As bad as this situation is for some buyers, it’s a silver lining for those that remain as the competition is expected to moderate this summer.
This summer’s housing market will still firmly be a seller’s market. Buyers aren’t likely to have the upper hand in negotiations or have an easy time finding deals. But buyers should have more time to view homes and craft their offers in some markets.
Less competition doesn’t mean homes prices will drop. Housing inventory is still exceptionally low and demand is likely to stay strong. Rather than seeing prices drop, they are expected to grow, but at a slower pace.
If you’re planning on buying or selling a home during the summer 2022 homebuying season, here’s what three experts believe the real estate market to look like and what you can do about it.
What Three Experts Are Saying About the 2022 Summer Homebuying Season
Selma Hepp, deputy chief economist at CoreLogic
A slowdown in activity due to higher rates.
Our forecast is for a gradual slowing of home price growth down to single-digit appreciation a year from now, Hepp says. That level of home price growth is roughly half of what we have seen. You’re going to see fewer bidders and homes won’t be selling over the asking at the rate they are right now, she says.
Tendayi Kapfidze, chief economist at US Bank
A strong housing market, but with slower home sales and price appreciation
With low housing inventory, low unemployment, wage growth and a large demographic of buyers entering their peak homebuying years, the housing market should stay strong. However, rising interest rates are, “making things less affordable for a lot of people,” Kapfidze says. This leads Kapfidze to expect slower home sales and smaller price appreciation, but still a very strong housing market.
Dr. Jessica Lautz, vice president of demographics and behavioral insights for the National Association of Realtors
Fewer buyers, but low inventory
“We are already starting to see signs that the market is moderating,” Dr. Lautz says. This summer it is likely that fewer buyers will be able to afford a home because of rising interest rates and increasing home prices. While unaffordable housing isn’t a good thing, it does mean that buyers still in the market may have more time to find the perfect home. However, even with fewer buyers, Dr. Lautz says demand will stay strong and inventory will be tight.
Source: time.com ~ By: Katie Collins , Jason Stauffer ~ Image: Canva Pro