Housing Market Update for June 2022
What does the housing market look like for the next several months? Will housing prices tank or keep skyrocketing? Will mortgage rates continue to rise and what does that mean for buyers and sellers? What does the rest of the year hold for the housing market for buyers and sellers?
Housing Inventory, Mortgage Rates AND Housing Prices will Continue to Climb
Housing Inventory will continue to increase, mortgage rates will likely continue to respond to pressures from inflation AND Home Prices are Projected to Continue to Climb
Experts are saying that the number of homes available for sale is likely to grow. Housing inventory is showing an increase and experts are saying that should continue in the months ahead. Danielle Hale, Chief Economist at Realtor.com says this “the gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue and this growth will mean more options for buyers than they’ve had in a while, even though housing inventory continues to lag pre-pandemic normal.
So what does this mean for buyers and sellers?
If you are a buyer, having more options is great news! But just because there is more inventory, doesn’t mean the supply isn’t still low, so you still need to be ready to act fast and put in your best and strongest offer.
For sellers it means your home may have more competition because more sellers are putting their homes on the market. But in my experience, if your home is prepared for the market correctly and priced within market expectations, you should have an offer within 7-21 days. If you don’t receive an offer within that time frame it may be time for a price reduction. We are seeing some price reductions in this market so it’s doubly important that your home is priced right from the get-go.
Mortgage Rates will Likely Continue to Respond to Pressures from Inflation
Experts also agree that mortgage rates will continue to be driven up by inflation. Although they agree not at the speed of rate increases between January and April. Adeta Kushi, Deputy Chief Economist at First American says: “ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come”.
Finally —Home Prices are Projected to Continue to Climb
Prices for homes will continue to appreciate because there are still fewer homes than buyers. However, experts agree the pace of the increase in prices should slow down but not fall. Lawrence Yun, Chief Economist at the National Association of Realtors explains “Prices throughout the country have surged for the better part of two years, including the first quarter of 2022. Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.”
What this means for buyers is that it will cost you more to buy a home the longer you wait. If you do end up buying, the best part of this news is that your home will continue to appreciate in value, helping you build wealth.
For sellers, price appreciation is always good news- more money in your pocket when you sell your home.
It’s important to know what is happening in the market whether you are buying or selling so that you can make the most informed decision for yourself and your family.