Whether you're in the market for a house or selling your home, knowing the current housing market trends can help you as a buyer or seller. It's important to understand the real estate market in your area, as well as nationwide.
Do you know the housing demand and mortgage rates for real estate in your search area? Read more to learn about the current housing market so you can make informed decisions when buying or selling a home.
These three current real estate market housing trends should help you decide if homeownership is right for you in the new economy.
1. Modest Increase in Home Sales
As mortgage rates dropped in this past year, many homeowners refinanced their loans but the growing economy increased home sales. A couple of years ago, Sam Khater, chief economist of Freddie Mac, predicted that the refinancing boom will decrease. As refinancing wanes, home sales will grow.
It will be moderate growth in home sales because there just aren't enough houses to keep up with the demand. According to Market Watch, the housing markets away from the east and west coast, such as Idaho and Arizona real estate could see a boost in home sales.
2. More Millennial Home Buyers
Millennials were born between 1981 and 1996. This generation is expected to take advantage of the current housing markets and low mortgage rates, diving into homeownership.
Although mortgage rates might be a little higher than in 2022, they're expected to stay below 4 percent for a 30-year fixed mortgage. In fact, according to Mortgage Reports, the February hit mortgage rates as low as 3 percent. These low-mortgage rates will make the home buying experience even better.
Millennials will dominate the housing market for the next few years making the leap from rentals to home buyers.
3. More Interest in New Affordable Housing
Affordable housing will be a problem for many people in today's market. One problem is that construction costs are high, which means less new construction.
Builders are starting to shift from building luxury homes to more affordable entry-level houses. However, the demand for existing homes is still higher than what's available in the real estate market.
The housing shortage causes the cost of homes to increase. Many people who want to buy a house can't afford the ones available.
This shortage caught the interest of local, federal and state housing authorities. They're expected to work on solutions and development of more affordable single-family and multifamily homes.
Predictions of Housing Market Trends Keep Changing
Although the 2022 housing market trends include increased home sales, more Millennials buying homes, a need for affordable housing, these trends are always changing. Even if the economy takes a downturn, this doesn't mean the real estate market will suffer.
Understanding real estate trends can guide you in your decision to buy or sell a home. Working with a professional realtor who has your best interests at heart is the key to finding the right home or getting the best price if you're selling.
If you found this information about housing market trends helpful, read our educational content about real estate, investing, marketing and more. Visit the Real Estate section of our website right now for top tips on property investments, managing properties, home improvement, mortgages, and much more for 2022 and 2023.
