In terms of real estate horror stories, 2021 was full of them, including sight-unseen bidding wars and mansions flying off the shelf for cash with no inspection.
Congratulations if you were able to find a new home in 2021. If you're still seeking to buy, you're undoubtedly wondering if it's a good idea to buy in today's market and if anyone will want to buy your house. Will a home acquired in early 2022 lose value or increase in value in the future?
Our business at Elite Properties is real estate. We closely monitor the market and can tell you that statistics indicate that property prices will continue to grow in 2022.
We'd like you to keep in mind that your home is more than just an investment. This is where you will spend most of your time, and a property will be worthless if it does not suit your financial circumstances or lifestyle. Also, if we get into the numbers, these figures will be more relevant to Move-in ready homes.
Let's take a look at what's been going on while keeping all of that in mind:
In 2021, home prices reached new highs.
Everyone wanted to buy in 2021, and housing inventory was extremely limited across the country. As a result, prices reached an all-time high this summer.
"Inventory fell in 2020 and 2021 as demand for homes increased, owing to the Great Reshuffling, cheap mortgage rates, and a demographic surge of millennial and baby boomer home purchasers." According to a September 2021 press release from Zillow, "the combination of little supply and tremendous demand pushed prices into new territory, reaching a record-high 17.7% annual increase in August."
You might be wondering, "Who will buy my house?"
Although inventory is improving, the market remains heated.
Inventory will improve as more people prepare to list their houses this winter. But we aren't yet out of the woods! Because there are still more potential buyers than available properties, home prices will continue to climb as a result of the competition. They'll simply rise at a more moderate pace.
To back this up, let’s take a look at what the experts have to say.
None of the top experts predict a drop in value in 2022. They're all in agreement that housing prices will continue to rise next year, while they disagree on exact figures.
"Price increase is likely to return to a normal range," Realtor.com's Danielle Hale adds, "but this is on top of recent high prices... As a result, prices will [still] reach new highs. The rate of price rise will slow significantly..."
So, while the market isn't as hot as it was last year, property values continue to rise.
"The recent unsustainable rate of home price increase will halt sharply," says Brad Hunter of Hunter Housing Economics. The price of a property will not fall... "However, they will rise at a more sustainable rate."
Although it's still a seller's market, things aren't as bad as they were last year.
"Along with the predicted slowing of price appreciation in the coming months, the market is beginning to shift toward a balance between buyers and sellers — though that middle ground remains a long way off," said Nicole Bachaud, Zillow's economic data analyst.
What does this imply for potential buyers?
While 2022 appreciation will not be as high as 2021, it does not appear that the market has reached its peak and is about to implode. That should help you out.
Elite Properties: If you decide to sell your present house and buy a new one, we can make the process of selling your current home simple and stress-free.
Let's address some of your concerns:
Q: Will you buy my house in its current condition?
A: Of course! You will not be required to make any repairs.
Q: When you acquire my house, would you charge commissions or fees?
A: No way! When you engage with Elite Properties, there are no agent commissions or fees.
Q: If you buy my house, will you assist me with packing and moving?
A: Of course! We strive to make the process as simple as possible for you, and we'd be delighted to discuss how we can assist you.
Contact us today for a no-obligation quote if you live in areas such as Washington, D.C., Maryland, Virginia, or Pennsylvania. We'll assist you with moving out of your current residence and into a new one.