Trends in real estate over the past couple of years or so, owing in large part to COVID-19, have deviated from the expected and traditional. You likely know that home prices are up, inventory is low, and Millennials are making up a larger portion of the home-buying population. But there’s more going on that you should be aware of if you’re a buyer. So let’s take a look at 5 Garner home buying trends we’re seeing in 2022.
1. Continuing Low Home Inventory
One of the most easily observable home buying trends in 2022 is the continuing low inventory of for-sale homes. In fact, there’s about a 15.5% reduction in inventory from just over a year ago.
One of the chief effects of this paucity of available for-sale homes is that homeowners are reluctant to sell, which further drives down inventory. Existing homeowners don’t want to sell and so have to enter this incredibly competitive buyer’s market to find a new one.
This one of the Garner home buying trends we’re seeing also means that buyers will have to make some adjustments.
- They may have to relax or alter their search criteria, especially expanding the search outside what they consider the ideal area or neighborhood.
- Pre-approval becomes a necessity. Buyers must be perceived as serious and capable of getting financing.
- Buyers must be prepared to compete in multiple-offer situations.
To discover more about how to compete in such a competitive market with inventory, contact a Garner agent. Just call (919) 772-1222 to discover more.
2. Home Prices Still Rising, But More Slowly
Another of the Garner home buying trends we’re seeing in 2022 involves home prices. They’re still going up, but at a slower rate than previously.
“Skyrocketing price tags for homes show signs of slowing . . . but not nearly as much as buyers would like. Prices remain stubbornly high. . . . While buyer demand remains strong, home prices will continue to climb, although it is expected that prices will moderate in growth.”
There is a possible upside here, though. With price increases slowing a bit, the “supply of homes for sale may become a bit more favorable for prospective buyers, and with that, there will be [in turn] less upward pressure on home prices and perhaps further actual declines in pricing trends . . . After sellers had held a distinct advantage in the housing market, the scales have begun to tip more in buyers’ favor.”
3. Interest Rates Increasing
After hitting historic lows a short time ago, mortgage interest rates are now beginning to increase. The Fed’s drastic interest rate reduction in 2020 made borrowing to buy a home far more affordable, so many buyers expedited their plans to upsize. But this year, the Fed raised interest rates in response to inflation. Rates are expected to continue to increase, but will likely remain relatively lower than in past years.
If you’re a prospective buyer, this is definitely one of the home buying trends you should keep an eye on. Although it’s unlikely that rates will increase drastically, it’s still a good idea to watch them so that you can jump in and make your purchase before they get unaffordably high.
4. A Slowing Housing Market
Experts also agree that a slowing housing market will be one of the more salient home buying trends throughout 2022.
“With the cumulative impact of higher mortgage rates, increased home prices and fears of recession, housing-market activity has already taken a significant dip . . . Slower demand is likely to continue throughout the third quarter, which will be characterized by year-over-year declines in home sales as well as slowing of home price growth on a year-over-year basis. We will likely see more price reductions, too, partly due to seasonality, but also as sellers contend with the reality of slower buyer demand.”
5. Young Buyers at a Disadvantage
One of the more concerning home buying trends is that young buyers, especially Millennials, will be at a disadvantage.
This trend is due not only to rising home prices and interest rates, but also in part to the fact that “Boomers are staying in their homes longer as they live longer.” Primarily, though, “more and more first-time homebuyers are likely to need financial help from family and friends to make a down payment . . . Obviously, that will limit who can buy a house. Housing affordability in the U.S. has been an issue for buyers, particularly young ones, for some time. But the issue has only been exacerbated since the onset of the pandemic, and will continue.”
And the Near Necessity of a Good Local Agent
The upshot of these home buying trends, according to industry experts, is that you’ll need to do “your research ahead of time so you’re ready to go when you find the right listing. When buying a home . . . it will be important to watch new listings, including ‘coming soon’ listings, and be very prepared to not only visit the home quickly, but prepared to decide and extend an offer almost immediately.”
And this means, of course, that the services of an experienced, local Garner agent will be critical. So when you’re ready to buy in the midst of these home buying trends, contact us today at (919) 772-1222.