The US housing market is in a much better place than it was last year. Sales are up, prices are rising, and inventory is low. This is good news for both buyers and sellers alike.
Of course, as with any market, there are always ups and downs. So it’s essential to pay attention to what’s happening in your area specifically. But overall, things are looking suitable for the US housing market right now. So if you’re considering buying a home or selling one in Washington, DC, now might be the time to do it.
Housing Market Trends You Need to Watch in 2022
If you’re thinking about buying or selling a home soon, it’s important to stay up-to-date on the latest real estate trends. That way, you can make the best possible decision for your situation.
Here are a few housing market trends you need to watch in 2022:
Sales Prices Are Rising
According to Zillow, the median home value in the US is currently $262,000, which is up 11.0% from last year. This trend is expected to continue into 2022, with values rising another 0.96%. Rising prices are good news for sellers, as their homes are likely to sell for more than they would have last year. However, it does mean that buyers will need to be prepared to pay more for their dream home.
Inventory Is Low
One of the biggest challenges facing buyers is the lack of available homes on the market. According to Realtor.com, 20% fewer homes were available for sale in April 2021 than in April 2020. This trend is expected to continue into 2022, as more and more people choose to stay put instead of moving. This could mean that buyers will need to be even more competitive when making an offer on a home.
Interest Rates Are Remaining Low
Interest rates play a significant role in how much buyers can afford to pay for a home. Right now, interest rates are still near historic lows. According to Freddie Mac, the average 30-year fixed mortgage rate is under three percent. This is good news for buyers, as they’ll be able to get more houses for their money.
More Buyers Are Turning to New Construction
According to the National Association of Realtors (NAR), new home sales rose 21% in 2020. This trend is expected to continue into 2022 as more and more buyers turn to new construction homes to find the perfect property. The current trend is good news for buyers, as it means that they can lock in a low rate and save money over the life of their loan. However, it does mean that sellers will have a more challenging time finding buyers who can qualify for a loan.
There Will Be More Housing Options Available
One of the biggest trends we see in the housing market is the rise of alternative living arrangements. This includes tiny homes, accessory dwelling units (ADUs), and multi-generational homes. According to the NAR, 20% of buyers are interested in alternative living arrangements. This trend is expected to continue into 2022 as more and more people seek unique housing options that fit their needs.
More People Are Moving to the Suburbs
According to Realtor.com, the suburban housing market outperforms the urban market. This trend is expected to continue into 2022, as more people are looking for more space and quieter neighborhoods. This could mean that buyers will need to be willing to look outside of major cities to find their perfect home.
There Will Be More Millennial Buyers
Millennial buyers are expected to make up a larger market share in 2022 than in previous years. According to Zillow, 36% of all home buyers will be millennials in 2022. Many millennials are now reaching an age where they’re ready to settle down and start a family.
There Will Be Less Intense Competition
One of the most important things to remember when buying a home is that you’re not alone. There are millions of other people out there looking for their perfect home. However, the competition isn’t always intense. We’re currently seeing a trend towards less competition in the housing market. More homes are available for sale, and interest rates remain low. This trend is expected to continue into 2022, so buyers will have an easier time finding a home that meets their needs.
The Foreclosures Will Rise
The number of foreclosures is expected to rise in 2022 as more people cannot keep up with their mortgage payments. This could mean that buyers will have more options for finding a home, but it also means that they’ll need to be prepared to deal with the emotional stress of buying a foreclosure. However, this trend is not expected to last long, as the economy is predicted to rebound in 2023.
If you’re thinking about buying a home in 2022, it’s important to remember that the market will be ever-changing. By being aware of these trends, you’ll be able to make informed decisions and find the perfect home for your needs. Remember: there’s no right or wrong time to buy a home, as long as you’re prepared for whatever the market throws your way.
We at The DC Team can help you find the perfect property. We are a real estate team specializing in assisting buyers in finding their perfect home in Washington, DC. We have a wide selection of homes available, and our experienced agents will be able to guide you through the process of finding and financing your dream home. Contact us today to get started!