Last year, homebuyers had it rough. The market was tough, with buyers digging to buy properties and not hesitating to enter serious bidding wars. In the meantime, prices went up all over the world. According to experts, the 2022 market is expected to be a little more forgiving to buyers but still leaning toward the sellers. It’s safe to say that becoming a homeowner won’t be easy at all, even after the market calms down a bit.
Start preparing today if you’re planning to buy a house this year. The competition is fierce like at the Olympics, and you will need to react quickly and be fast with your decisions and moves. Here’s what to expect to come across when buying a house in 2022:
Expect fierce competition
Houses are still in high demand—this fact is not going anywhere anytime soon. Many parts of the world, like the States and Australia, experience a housing shortage, with many buyers ready to jump in. And the biggest problem is that many buyers work remotely, so they are flexible and willing to take advantage of any location and market. There are also demographic changes that affect the market. Millennials are taking over the home buying scene while Boomers are starting to downsize. Therefore, expect a lot of competition, especially with starter homes.
Prices will rise
Home prices are going up every year, and 2022 is not an exception. However, compared to 2021, the costs will increase slower (in the States, this number doesn’t even reach 3%). Predictions vary from expert to expert and country to country, but the gains are not going into double digits so far. This means buyers can relax, at least a little bit, and have more time and space to make good purchasing decisions.
Be smart about home insurance
According to statistics, Australia’s inflation almost reached 4% – a serious jump from the numbers predicted a few years ago. However, that’s not the worst part—some goods doubled in inflation due to supply chain and production issues caused by COVID-19. This means that home insurance rates will go up, and more and more buyers will have to pay attention to their coverage. It’s best to invest in replacement cost coverage today. On the other hand, check whether you can sue for junk insurance fraud and get reimbursed for your losses to save up some money. If you’ve been paying for unwanted insurance, you might be eligible for refunds you can use towards home insurance.
The mortgage will go up as well
In 2021, mortgages were at their historic lowest. The average 30-year rate was somewhere around 3% in many places, which is very affordable for many buyers. However, with the market stabilizing, mortgage rates will increase in 2022 yet still stay pretty low. For instance, experts predict that in the upcoming months, rates will go from 3% to 3.3%, 3.5% or 3.7%, which is more than affordable, but an increase is an increase!
Be prepared to strike
With a stabilizing market and rates slowing down their ascend, buyers still need to be prepared—there’s not much space to relax. Start doing your research right now so you can jump in when you see a good offer. In 2022, it’s essential to keep an eye on new listings. Even those marked as “coming soon” should take your attention. Be prepared to visit the seller quickly and give an offer right away if you like what you see.
Buying a house is stressful enough without all the pressure buyers feel today. However, if you keep these tips in mind, you will be prepared to tackle the issues and end up with the property of your dreams.