Housing Market Outlook for 2022
In 2020 and 2021, the housing market saw some unusual activity, prices, and demand. So much so that many home buyers taking advantage of record-low rates were simply priced out of bidding wars. In some cases, individuals and families may have chosen to rent instead of buy due to a lack of affordable inventory. However, with 2022 right around the corner, investors and renters want to know if the New Year will usher in a more stable housing market.
What’s Next for the Housing Market?
Although predictions vary, most experts agree that 2022 will see continued “normalization” or market balance. However, with price growth expected to slow heading into 2022, other factors will be essential to consider such as seasonality in the real estate markets, employment changes for the area you are located and inflation rates.
Should You Wait Out a Hot Real Estate Market as an investor?
In some ways, waiting is always a gamble. However, this may be a prefect time to purchase an investment property because demands for rentals is at an all time high. Other things to consider as a property investor include
- Avoiding Pressure Decisions – Homes may be flying off the market all around you, but that does not mean they are all great deals. Home investors should never give in to the pressure to buy just to “have something.” If the home is not right, keep looking, or you may end up knee deep in housing repairs and regret.
- Know Your Target Area – As we mentioned, not all national trends translate to the local market. So, buyers must be in tune with the trends and demands where they are looking to buy.
- Make Sure You’re Ready – Purchasing a home in any market is a substantial financial commitment. Although the frenzy to buy may be at a peak, that does not mean this is the time for everyone. So, whether the market is hot or cold, make sure you are financially prepared to make the leap into investing.
Is Renting the Better Option in 2022
Deciding to rent a home involves many other more minor decisions. Individuals and families must evaluate their goals, desired location, budget, and priorities when determining their housing options. Looking forward to 2022, rental market predictions echo the effects of a turbulent year in the real estate industry. With so many uncertainties in the housing market, renting has become an attractive option. Renting is an excellent option for buyers who aren’t interested in overpaying for the few houses on the market. Plus, with prices at nearly record highs, renting can save money while buyers plot their next move.
Unlike the housing market, rental market predictions show that prices will remain more stable at the beginning of 2022. While prices did go up during the pandemic at a rate of around 4.5%, it was not as dramatic as home prices.
At All County Property Management Group, we help not only renters find their next home but also property investors looking for an experienced property management company to take over the hard work of property management. We offer up-to-date listings to suit a variety of needs and budgets. In addition, our dedicated leasing staff works with you every step of the way so you can feel confident in your home choice. Plus our team handles all property management needs from maintenance, leasing documents, marketing and more! For more information or to see our available listings in your area, check us out today!