Looking to buy a home over the last few years? Did you just read up on low mortgage rates? Of course you rejoiced and did that air punch thinking that perhaps 2022 will be that year when you get to finally buy your own home.
Most Spokane home buyers and buyers across the US have long thought that low mortgages are ideal fuel to start the process of buying a home. However, the fact remains that despite mortgage rates at standing at a historic low, there is a chance that 2022 will not be as ideal a real estate market as you anticipated.
The home buying market is simply not based on mortgages and pricing alone. There are a lot of related things to factor in. The pandemic has further taught buyers to remain wary of putting all their eggs in one basket. This has lessened the sheen on the real estate domain of late.
Mortgage Fluctuations
The mortgage rates are at around 3 percent for a 30 year span. However, the current rates are supposed to rise up slightly. While the rates will not skyrocket, it is always better to take things easy and watch where the market goes. There are ways to make more money now as well. Therefore, there is no point simply waiting for real estate investments at all points. Home buying activity might not be the best of things to indulge in right now.
Sellers’ Market
More home owners are looking to refinance homes in a bid to cash in on low mortgage. Moreover, there is a certain unwillingness to put homes up for sale given the instability in the market. Most sellers are not getting the expected value and thus are holding up selling their homes. Moreover, a chunk of sellers will need to buy another new home post-sale of one. The latter is not a good prospect in 2022, and thus they are not putting up homes for sale.
Low Inventory
The market is facing real estate crunch. Rising costs, lack of labor and enhanced demand for new homes have all negatively contributed to inventory presence on the market. There is more demand than there is inventory for the real estate domain, at the moment.
No Incentive For First Timers
That there is no high-end home that is affordable, holds true for first time buyers and even for mid-budget buyers. There is no major incentive for first timers either. These factors put off a number of people from buying homes in 2022.
Rental Market Is Stabilizing
There was too much turbulence in the rental market during the pandemic years because a lot of renters looked buy homes around 2020 end and early 2021. However, the rental market and rates are stabilizing and this year, they are set to settle up to an affordable range again. This has caused a demand for rentals again and people are putting off buying homes for some time yet again.
Construction Blocks
You might have planned to invest in high rises or condos that are set to be complete. However, the zoning issues, real estate shortages in labor and similar bottlenecks are acting as a deterrent in timely completion of such projects. Therefore, it is best you wait it out before you plan to buy a new home. Once such issues are sorted and the market comes back to a certain level of balance, begin your house hunt.
Misconception Around Home Inspections
Do get a home inspection done even if it appears a waste of money. It helps more than anything else to analyze what expenses stare at you when moving into a new place. Too much investment just on repairs and revamps is a red flag though. Consider such stuff carefully.
Summing Up
Investing in a home is a huge decision. You cannot just plan based on a slip in market rates. There are a lot of factors that play a role in helping you decide if it is the right time to invest in a home.
