Post-Pandemic Real Estate: What You Need to Know About the Summer 2022 Housing Market
June 28, 2022
Spring has traditionally been “real estate season,” but with the market on fire like it’s been, many buyers have been waiting for summer to see if there will finally be a return to normal inventory levels, normal competition, and most importantly: normal prices.
If you’re a buyer, we have good news! We have seen some promising signals that indicate the grueling real estate landscape that has frustrated buyers for more than a year is finally starting to change. The housing market is heading back to equilibrium in the summer of 2022.
For the next few months, interest rates will continue to rise, which will therefore weed out some buyers.
It may take awhile, but the higher interest rates will eventually start to have an effect on pricing, which we will start seeing more toward the fall.
“We are already starting to see signs that the market is moderating,” says Dr. Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors. This summer it is likely that fewer buyers will be able to afford a home because of rising interest rates and inflation that’s causing food and gas prices to skyrocket. While these aren’t necessarily good things, what they will do is provide breathing room for housing inventory to recover. And it will give buyers still in the market the ability to take more time to find the perfect home.
As the housing inventory goes through an adjustment period this summer, prices will not be as expensive as in 2021, so buyers will have more leverage than they’ve had the past year. For those who continue to wait until the fall, preparation will be key. Make sure you have your credit where it needs to be. Don’t open new lines of credit. Pay down credit cards. Save for your down payment. Make sure you are on good financial footing when it comes time to get pre-approved for a loan to start house hunting.
Summer 2022 is still a great time to list your home for sale as prices remain high and it’s still a seller’s market. Home inventory is 58% less than it was at pre-pandemic levels. Experts estimate home price growth down to single-digit appreciation a year from now, so now would be a great time to list.
Varma Realty Group would be happy to help anyone interested in buying or selling a home in the Greater Cincinnati area. We are available to answer any questions and also have buyers and sellers packets we can send out that are full of information on how we can assist you. Please reach out to firstname.lastname@example.org or call us at 513-307-3599 for more information.
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