A Wild 2021 Settles Into A More Stable 2022
In 2021, the real estate market was a wild ride, with home prices rising, numerous cash sales, and bidding wars for homes occurring across the country. Homebuyers who thought they had found the perfect property often had to re-think their decision, as desirable homes were scooped up quickly. In addition, the pandemic kept homeowners in their current homes, leading to low inventories of homes for sale. If you’re still looking to buy and are wondering what 2022 will bring, and a few clues indicate that the new year may bring a somewhat calmer marketplace.
Experts Foresee A Better Home Market for 2022
Several articles from financial experts predict that the 2022 housing market will be less volatile than in 2021. In 2021, construction came almost to a halt, while existing homes saw buyers competing for available properties amid skyrocketing prices. The low-interest rate for mortgages helped fuel this competitive atmosphere, and real estate professionals were constantly decrying the lack of inventory as the demand increased and the supply dwindled due to the pandemic. As a result, most experts see 2022 as becoming more stable, although prices are still expected to rise slightly.
Work-From-Home Trend Adds New Dimensions To Housing Market
Telecommuting for work has been a trend for many decades, but during the pandemic of 2020-2021, many more workers took on the lifestyle of working from home. The results were so favorable for employers that many companies continue to allow large segments of their workforce to work from their homes. The trend has generated interest in larger homes and those with enough room to accommodate a home office. In many cases, homebuyers have chosen to purchase homes in areas away from cities. Many exurb and rural communities benefit from the increased interest in buying houses in quieter areas of the country.
Low Mortgage Rates Are Still Fueling Increased Home Purchases
The mortgage rates currently being offered are still among the lowest in history, which has caused an influx of new buyers. Although the construction of new developments has been slow, due to labor shortages due to the pandemic and supply chain disruptions for materials, the existing home market is enjoying strong interest, and this is expected to continue for some time while interest rates remain low. Moreover, with the Federal Reserve Bank signaling concerns about inflation, interest rates are expected to continue to be low, sparking interest in purchasing a home among the younger generation of workers.
With the increasing stabilization of home prices, buyers in 2022 may find a less hectic real estate market that allows them to have a better chance of getting the property they desire. However, prices are expected to remain high, and construction of new homes will continue to be slow until the supply chain problems of building materials are resolved. So, if you’re looking for houses for sale in Rockford, Iowa, 2022 may be an excellent opportunity to find the home of your dreams at a reasonable price.