Experts say the housing market in 2022 is going to be a wild ride!
This last year has been an insane ride! We have seen people starting to move away from the cities to cut costs while working their remote jobs, millennials have begun entering the property market, and mortgages have hit an all time low! With all of those moving parts finding a property has become incredible difficult. Affordability has become a serious issue houses are being sold unseen at record highs and rent as gone up over 5% on average. With all these cost increases people are starting to expect more for their money.
Its easy to sell a move in ready house in this marketing but it remains difficult to sell a fixer upper.
Mortgages on the rise, time to sell.
“The year began with the lowest interest rates on record, with average rates for a 30-year fixed rate mortgage at 2.65%. But they didn’t last long. By April 1, that had reached a 2021 peak of 3.18%. Rates have fluctuated since, with the 30-year fixed at 3.05% last week, according to Freddie Mac. And we can expect rates to move even higher in the new year.” – cnn.com/2021/12/27/homes/us-real-estate-market-2021
We may have started 2021 with record low mortgages but that looks to be over. If you have property that you are struggling to pay the bills on this might be the time to sell and avoid the financial strain in the future.
The Feds and the Housing Market
The federal government is expected to announce an end to pandemic-era stimulus measures.
“That’s all well and good, but what does it mean for you, the homebuyer or seller? The end of asset purchases is viewed by many industry experts as a precursor to rising interest rates. And higher mortgage rates mean home buying becomes less affordable for many Americans.
“The Fed’s tapering means that less mortgage bonds and treasury debt will be purchased. As a result, mortgage rates will go up,” explains Edward Mermelstein, a real estate consultant and founder of One and Only Holdings, a boutique advisory firm catering to investors. “As mortgage rates go up, homes become more expensive to carry if you are financing the purchase.”” – realsimple.com
This year promises to be filled with twists and turns for both buyers and sellers. But if you are looking at your fixer upper and trying to decide if are in a position to sell, contact us! We will give you a no-strings-attached cash offer.