Introduction
The housing market has been a bright spot during the pandemic. The economic recession has been rapid, so, the big question on most people’s minds is what happens next. More homes are selling, and they still sell relatively quickly. Home price growth is slowing – and in some cases even declining. Mortgage rates are rising but are not yet at “normal” levels. New-home construction remains sluggish due to inflation.
Historically low inventory could hit an all-time low soon. Home sellers are not seeing as many offers and all-cash offers for their homes. Home buyers though still have a lot to be excited about.
The economic recession has been rapid, so the big question on most people’s minds is what happens next.
You may be wondering whether or not it’s a good time to buy a home. The housing market was one of the bright spots in an otherwise gloomy economy, but it’s now slowly creeping into its pre-recession doldrums
If you’re thinking about buying a home, now could be the perfect time to find your dream house and lock it down before the supply runs out.
Home price growth is slowing – and in some cases even declining.
Home prices have been rising steadily since the pandemic, but the pace of that is decreasing slowly. In most markets, home prices are even declining.
Should you buy or sell now? If you can afford it, buying a home might be a smart move if you’re looking to own rather than rent. But if you’re not sure whether now is the right time for you, take a look at your local market and start comparing today’s mortgage rates with those on record-setting mortgages seen during the housing bubble. You may find that what’s available now is more and better than with what was available during low rates—so (and unless something has changed dramatically), this might be another sign that now is possibly a good time to buy.
New-home construction remains sluggish.
The housing market has been slowly recovering since the recession began in 2008. New-home construction remains sluggish, however; builders are focused on high-end homes for now because those tend to sell faster and bring in higher profits than lower-priced ones do. The labor shortage continues as well—builders can’t find enough skilled workers or land available for development with reasonable costs per square foot (or acre). Finally, financing remains tight for many potential buyers because some lenders aren’t willing or able to lend at low rates anymore because of their own financial struggles in the 2022 recession.
The housing market has been a bright spot during the pandemic.
The housing market has been a bright spot during the pandemic. New home construction and sales activity have remained strong till the start of the year 2022 because overall economic growth has slowed and the unemployment rate has increased.
- Home prices are lower in most areas across the country
- New home construction is down
Historically low inventory could hit an all-time low soon.
Historically low inventory could hit a high soon.
When you look at the total prices of homes for sale, it’s easy to get discouraged. But remember that there are many factors that influence the amount of inventory and where it’s located. In some markets, prices have been rising faster than wages so people can’t afford more expensive homes. They’re staying put in their starter homes and renting instead of buying until they can raise their finances up enough to make a move up into a larger house with more amenities or better school districts. The opposite is true in other markets where rents have been outpacing home prices for years—so even though families may be looking to purchase instead of rent, they are now able to do so because there are enough houses on the market for them to buy!
The good news is: despite these trends in some areas (and others), overall inventory remains historically high compared with previous years (especially during this decade). And while we are predicting something drastic happening over the next few months (or even a year), we’ll keep an eye out just in case!
Home buyers still have a lot to be excited about.
- Home prices are falling.
- Inventory has increased, which means there’s less competition to buy a home. (That’s great news for buyers, but not so much for sellers.)
- Mortgage rates are a little high but still historically low.
- It is still either the same price or cheaper to buy than rent.
The longer-term economic outlook is more uncertain than it’s ever been in modern history.
The longer-term economic outlook is more uncertain than it’s ever been in modern history.
The economy is declining. But at a slower pace for now, which means that housing prices will likely not rise as fast as they have in recent years.
Do your homework and make sure this is the right time for you personally to buy or sell a home
When you are making this important decision, you should do your homework. The first step is to make sure that now is the right time for you personally to buy or sell a home. You should also be prepared for the market to change quickly, slowly or stay the same.
The second step is doing research on your local area and understanding how it relates to other areas of the country in terms of economic trends, property values and market conditions. Finally, talk with an expert who can advise you on the best way forward based on all these factors so that you can make an informed decision about whether or not now is a good time for buying/selling in your area
Conclusion
The biggest thing to remember is that the housing market is not going to be the same as it was before. This can be a good thing or a bad thing depending on your personal situation and goals, but one thing is for sure: You need to make sure that you are prepared for any changes that may come along with it.