The housing market in 2022 has seen some major shifts. With the rising cost of living and slowing global economy, these shifts have had both positive and negative impacts on the real estate market. As we head into the new year, it is likely that these housing market shifts will still impact buyers and sellers for the first couple of months, as changes tend to stick around until significant economic turns occur. As one of the best real estate agents in Littleton and the Denver Metro Area,
Brittny Castillo is here to teach you some important things to know about the 2022 market shift. Read below to find out more, or
contact us to inquire about selling or buying a home in this current market!
A Decrease In Homes On The Market
One of the most notable shifts we’ve seen in the housing market this year is a decrease in the number of homes available for sale. This is due to a number of factors, including a decrease in construction, an increase in competition among buyers, and a decrease in the number of people looking to sell their homes. As a result, the market has become increasingly competitive, with buyers having to outbid one another in order to secure a home.
In addition, potential sellers may be hesitant to put their homes on the market due to the lack of available inventory and a fear of not being able to find a suitable replacement. As a result, many people are choosing to stay in their homes longer, further decreasing the available inventory.
Home Prices Are Dropping
As a result of the decrease in homes in the market, home prices have also seen a drop. While this is beneficial for buyers, it is creating a difficult situation for sellers. For example, some sellers may be forced to lower their asking price in order to attract potential buyers, which could lead to a loss in potential profits. For sellers, this could be a difficult time as losses in profits could have a significant financial impact. However, it is important to remember that this is a temporary situation and the market could turn around in the near future. In the meantime, sellers may want to focus on finding ways to reduce their losses and make the best of a difficult situation.For those looking to buy a home, a decrease in the average home price may seem attractive, but you must keep in mind that mortgage rates have dramatically increased this year. Read on to learn more!
Interest Rates Have Increased
In 2022, home mortgage rates have increased significantly due to a combination of factors. Interest rates in general have been on the rise due to increasing inflation, leading to higher borrowing costs for home buyers. Additionally, the Federal Reserve has been raising its benchmark rate, which has a direct effect on mortgage rates. The economy has also been strengthening over the past year, leading to increased demand for mortgages and putting upward pressure on rates. Finally, mortgage lenders have been reducing the size of loan portfolios due to stricter lending standards, which has led to a decrease in competition among lenders and an increase in mortgage rates.
Should I Buy a Home Now or Wait?
This is a difficult question to answer as it depends on a number of factors, such as your financial situation and the current market conditions. However, it is important to remember that the longer you wait to buy a home, the higher the risk of the market shifting again. Therefore, if you are in a position to buy a home now, it may be worth doing so in order to take advantage of the current market conditions.
If you require assistance determining whether or not now is a good time to
buy or
sell a Colorado home, look no further than partnering with Brittny Castillio. Our real estate agents understand the housing market like no other, as our goal is to help you make the best choice for your situation.
Contact us to get started today!
