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Ladies and gents, it's still a seller's housing market, but there's no guarantee that will be the case by the end of the year. For those of you who may be on the fence about whether now is a good time to buy (or sell), HomeLight's year-end report has shed some light on what the future could hold in 2022.
To give you some insight, here's a brief summation of their predictions for the rest of the year.
More contracts are including contingencies
As housing prices rose, there began the great divide between what a house was sold for and what it was worth. When interest rates were at their lowest, buyers submitted offers above the asking price without any contingencies that gave the buyer an "out." That meant the deal was all but done.
However, now that buyers are experiencing fatigue, they're more aware of the cost. They're seeing that properties were priced well above their actual value. Buyers are now insisting on home appraisals and home inspections before they will go through with the deal.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Buyers aren’t digging bidding wars
Over the past 18 months, markets have seen bidding wars pop up left and right! Those cutthroat bidding wars are dying off, and 76% of respondents attest to this. According to their personal experiences, fewer properties receive offers. Of those who get multiple offers, it's only a tiny handful instead of the dozens from a few months prior.
Inventory tries to replenish as quickly as possible
For months, housing inventory has had trouble keeping up with demand. However, that is starting to change as public health improves. As more people become vaccinated, the safer folks will feel while they're selling.
Housing prices are dropping more frequently.
For most of 2021, 95% of realtors gushed that housing prices had skyrocketed. Today, about half of those same realtors could say the same, as reductions in housing prices are a common theme, much to potential sellers' dismay.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
Pandemic savings to usher in a sea of new buyers
The public health crisis has thrown a considerable wrench in many aspects of our lives, but in our newfound frugality, experts predict that there will be a new surge of buyers. 46% expect these new, more frugal buyers would put their recreational spending budget toward savings for a property and then buy while mortgage rates are still low.
Buyers with stock market and familial wealth have the upper hand
Even if new buyers could save a lot of money when they couldn't spend it on vacations, 45% of agents say buyers will ask family for financial help or pull from trust funds to buy a house. On the other hand, 37% of agents point out that the stock market was on fire, and many of their clientele were liquidating their accounts to come up with a house payment.
Unknown how foreclosures will impact the market
The hold on foreclosures ended five months ago (July 2021), but the full effect of this has yet to be fully felt. 9% of realtors report the number of pre-foreclosures is on the rise. But it isn't going to be as bad as the housing crash in 2008.
Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.
What can we look forward to in 2022?
Before entering the housing market to buy or sell property, you should always want to know what you're getting into. There are a lot of unknowns that can have an impact on housing market volatility… But it's always helpful to have expert insight. If you have any questions about your options, you shouldn't hesitate to contact a local professional real estate expert.