Why spring 2022 will be the perfect time to sell your home


Spring is the traditional time to list a home, but the pandemic and the resulting surge in home values ​​have made the market anything but predictable.

The value of home sales in the United States increased significantly in 2021. According to the Federal National Mortgage Association (FNMA), more commonly known as Fannie Mae, the trend is expected to continue in 2022, but at a slower pace.

So where does that leave homeowners looking to sell their homes? Will spring 2022 still be the best time of year to list a home, or could other economic factors come into play? We consulted with experts in the real estate and mortgage industries to better understand what the New Year could bring to home sellers.

Higher interest rates could have an impact

Mortgage rates have been low for years, but recently have risen slightly. While there is no indication of runaway rates in 2022, even minor increases can dampen home sales.

Mike Gregor, a Connecticut real estate agent with Cohen SiM Agency, LLC, speculates that the housing market could cool down a bit in 2022, but he doesn’t think that will change drastically. However, Gregor told us that “the mortgage rate may go up soon.” As such, he thinks it might be better for sellers to “list their homes now rather than wait.”

Does early enrollment make sense?

Glen Pizzolorusso, real estate broker associated with Compass in Fairfield County, Connecticut, thinks there is a good reason for sellers to list their homes in the second week of January 2022.

Why? Pizzolorusso anticipates a peak in buyers just after the new year. Although he expects the growth in home values ​​to stabilize slightly in 2022, he does not foresee a crash: “I do not anticipate a surge, but some markets will see slight corrections,” says Pizzolorusso . “If you are thinking of selling, I wouldn’t wait.

real estate spring 2022


Low inventory foreshadows a sellers market

Due to continued supply chain disruptions related to the pandemic and a shortage of building materials, fewer new homes were built in 2021. The decrease in the number of new homes has helped reduce the housing stock. and increase the value of homes.

Andrew Bennet, real estate broker with Haystack Real Estate Group in Greenville, North Carolina, expects this trend to continue next year. “It’s definitely a sellers market right now and it will continue through 2022, not just into the spring,” Bennet said. This is good news for sellers who may have to wait until later in the year to list their home.

Lender predicts strong real estate market in 2022

Homeowners may worry about the effects of rising inflation on the real estate market over the coming year, but Heather McRae, Senior Loan Officer at Chicago Financial Services, does not foresee any problem for the sellers.

“Real estate is an asset class,” McRae said, “and, in inflationary environments, asset prices tend to rise.” While she believes the pace of sales may be slower in 2022 than in 2021, she also expects home sales to remain strong throughout the year.

real estate spring 2022


Seasonal sales strategies

When the weather cools down in the fall, real estate sales usually cool down a bit too, but this does not happen as markedly in 2021 as in previous years, thanks to low housing stock and increased competition from housing estates. buyers.

Some real estate experts and mortgage lenders believe the real estate market will continue to be strong through 2022, which means sellers may not have to rush to list their homes before the traditional May 1 deadline. . If home values ​​continue to rise, waiting for the sale to go on sale until the summer or fall of 2022 may result in more profit on the sale.

Demographics and regional details

Regardless of whether the national housing outlook is good or bad, homeowners need to be aware of what is going on in their communities when looking to sell a home.

Home values ​​vary by region: a 1,500 square foot rancher can sell for $ 350,000 in a booming city, but only earn $ 175,000 if he’s in a depressed economy. .

While Spring 2022 always seems like a good time to list your home, be sure to speak with local real estate agents to make sure it’s the right time to list in your community.

Source link

Previous The slain security guard, 80, was a "man of faith" and the great-grandfather of more than 40 children
Next Majedie Asset Management Ltd: Form 8.3