If you're considering purchasing a property in today's housing market, you may be concerned about the strength of your investment. You could be thinking to yourself, "Will my home lose value if I sell it now?"
The good news is that housing values are not expected to fall much, according to analysts. This is why.
Home prices are expected to continue rising in 2022, but at a slower or more moderate pace, as buyers continue to outnumber sellers. What is the reason for the steady rise? It's just a matter of supply and demand. When there are fewer things on the market than there are buyers, prices will inevitably rise as a result of the competition.
The housing market is expected to be a whirlwind in 2022, according to Danielle Hale, the chief economist at Realtor.com. On top of the 2021 highs, home sales are predicted to increase by 6.6 percent, and home prices are expected to rise by 2.9 percent.
A gradual rise in mortgage rates will make affordability a primary priority for home purchasers, particularly the 45 million Millennials between the ages of 26 and 35, who are prime first-time home buyers. Despite a minor increase in housing inventory, demand from these young households will maintain the market competitive and fast-paced as builders continue to ramp up output, expanding single-family starts by 5% in 2022.
Thus, the projections show continued appreciation, but at a more moderate rate than what we’ve seen over the past year. None of the major experts are projecting depreciation in 2022. They’re all showing an increase in home prices next year.
What Does This Mean for the Housing Market?
While home price appreciation is predicted to continue, it isn't expected to be as high as the market's record-breaking 18 to almost 20% increase over the previous 12 months. Overall, it's crucial to recognize that price hikes will be less dramatic than they were in 2021, but they won't be going away anytime soon.
What Does That Mean for You?
With so few homes available to buy and so many determined buyers in the market, the supply and demand imbalance will continue to put upward pressure on home prices in 2022. It is crucial to understand that housing prices are not expected to fall this year; it’s expected to climb, but at a slower rate.
How Difficult Is it To Sell Your House In The Market?
The majority of folks who start out trying to sell a house themselves—estimate around 85 percent—end up using an agent. It’s just that there are so many different skills involved, from marketing and negotiations to scheduling inspections, making sure that the right documents are produced when needed, and so on.
Plus, more active agents may sell 12–24 or more houses a year. The average homeowner sells his/her home once every 7 years. That’s a big difference.
Finding buyers, pricing the home, interpreting the legalese behind real estate law, and having that certain aesthetic sense for preparing showings and marketing materials all play a role in selling real estate. All of these take time, lots of time, and preparation.
Bottomline
That’s one of the things that make the investor “We Buy Houses” pitch attractive. They buy quickly at a set price. They buy in as-is condition. They’ll pay most or all closing costs. They pay cash, so there is no hassle with the buyer getting financing. If the seller is willing to accept a relatively low price, then the rest of the process is very simple and straightforward.
And this is exactly what Ash Creek Properties can do for you. If you are planning to sell your home for immediate cash, we can provide you with an all-cash offer. No repairs and improvements necessary. Close and move out on the date of your choosing, just contact us today.