Homebuyers continue to face an uphill battle in the current homebuying season.
Home values skyrocketed by nearly 20% in 2021, according to the recent data by the S&P Case-Shiller national index of home prices.
While housing prices aren’t expected to drop this year, some experts believe home values will increase at roughly half the rate (single-digit increases) of the peak in 2021.
Here’s what to expect from the market in coming months and what you can do about it.
Preparing to Sell
The good news for sellers is that buyers looking for homes are still expected to outnumber the homes for sale. Overall, home prices are expected to continue to increase, but demand can vary from one neighborhood to the next.
If you plan to complete any maintenance or major upgrades before listing your home, start that process as
soon as possible. You’ll need more time to obtain materials and find trade professionals to do the work.
While market activity still favors sellers, there could be a reduction in bidding war activity, depending on the local market. In Northern Colorado, bidding wars continue
to be common across price ranges.
Preparing to Buy
Mortgage rate increases are forecast to continue. In early April, 2022, rates were about 1% higher compared to April, 2021. Determine how this affects your buying power and
adjust your target price range accordingly.
Know your home buying budget so you’re clear about what you’re willing to spend for a property that meets your needs.
Save for your down payment, closing costs, and unexpected repairs and maintenance.
First time buyers looking for more affordable homes will continue to face strong competition from a large demographic of buyers in search of their first home.
Given that specific types of homes will have more demand, be as flexible as possible with the type of home you want to buy.
A larger percentage of the workforce has the opportunity to work from home, which may fuel competition in housing markets typically known to be more affordable, such as smaller cities and suburbs of cities. Be open and flexible about where you want to buy.
Due to the strong seller’s market, buyers need to be patient. It’s important to buy when the time is right for you. Buying a home should make sense for your personal and financial situation. Don’t make a panic-driven buying decision and end up with a home purchase that causes regret.
You may not find your dream home today, but a home that works for you right now can be a stepping stone to another home down the road.
Contact me to discuss your plans for selling your current home or buying your next home!