Spring Housing Market Predictions 2022

Spring housing

What can you expect to see in the housing market in spring? Consider the following data and its explanation to prepare for it better.

Official numbers to shed light on the housing market in spring

official numbers

The real estate industry has entered 2022 with a clear understanding that the market will be different from the one seen before. Spring is often considered a peak season in this sphere, but what to expect in 2022? If you remember the situation in the market in 2021 at this time period, it was characterized by a tough bidding war in over 70% of home listings. Can you expect to see the same now? Probably, yes. Furthermore, some experts predict that this spring may become the hottest period of home purchases since the bidding wars percentage is climbing up again.

Recent statistics show a significant increase in the number of deals closed at the beginning of spring. The market has gone crazy and it makes the situation stressful both for home sellers and buyers.

All this happens despite a quite impressive growth in the home prices. The numbers have soared by almost 19%, but the competition is still really tough.

 

bidding wars

The predictions made at the beginning of the pandemic period said about a crash in the real estate market, but the result was different. Summer 2020 was a sweet time for first-time millennial buyers who took advantage of the incredibly low mortgage rates. It has led to the domination of demand over the available inventory. This trend has gone tougher in spring 2021 when only two-thirds of all inventory listed before the pandemic has left. The lack of homes encouraged buyers to offer more than the original listing price and resulted in real bidding wars.

Some real estate experts believed that the beginning of 2022 would be characterized by an increase in the inventory number. The hope was on elderly sellers who were afraid to enter the market and participants of the COVID-19 mortgage forbearance program. This prediction was partially true since the listings became more numerous at the beginning of the fall but only for a couple of months, unfortunately. January 2022 could experience a drop of around 42% in inventory in comparison with the previous year. Therefore, the spring housing market will surely beat the record of last year too.

It is a perfect time for sellers who plan to sell homes and don't need to buy anything instead, while buyers have to struggle for every deal and be patient enough to catch at least anything.

The changes in prices have also puzzled experts who made predictions for the upcoming year. Many of them believed in their deceleration in 2022, but the truth is different. At the end of the year, Zillow made a prediction for 12 months and concluded that the price growth will be around 11% by the end of the year. However, in January the number reached 16.4% and it is expected to grow up to 21.6% in May, so this year may finish at a record-high level of 17.3%. Tight inventory is the main reason for such conclusions!

 

One more aspect worth consideration is mortgage rates that keep on growing too. At the end of the year, the fixed mortgage rate for 30 years was at the level of 3.11%, but in April it has already reached 3.92%. This growth may decrease the number of buyers but it can also have an opposite effect: more buyers will try to close the deals while the rate hasn't increased more.

As you can see, three aspects including a shortage of inventory, rising prices and mortgage rates will surely make the spring housing market red. Therefore, consider these facts before making a decision about a real estate deal not to get into a trap!

Written by
Andrew Zlobin
CEO/Founder of spotlessagency.com

Related entries

When it comes to 3D modeling, virtual staging, and architectural rendering, we know that you want the details of how it works and how it can benefit you and your business. These recommended articles will give you the inside track on everything we do, and we’re sure you’ll find them to be as entertaining as they are informative.

image

Real Estate

Top 5 Home Selling Mistakes To Avoid In 2023

It happens that real estate may remain on the market for several years and there is hardly any client wishing at least to look at it let alone buy it. Why does it happen? Unfortunately, it may be the result of rough mistakes made by the seller. Today it is important to make up a strategy to sell a home for the reasonable money and within a short period of time. Some people ignore this not understanding that in 2023 it is not enough to make several amateur photos and set the price. That is why there is a list of sellers’ common mistakes to avoid and be more successful with selling homes

Read article Read article
image

Real Estate

Fancy cars for real estate agents: Yes or No?

It is not surprising to see successful real estate agents who drive luxurious cars. Moreover, since their job involves moving around the neighborhood, city, or even a state, the car seems to be a necessity rather than a luxury.

Read article Read article
image

Real Estate

10 Cities for making a real estate career in 2019

Real estate business differs from one city to another. Every market has its own hot time, and if in one city, it can be easier to build your career in this industry, another city or town can be a real hell for new and even experienced real estate agents.

Read article Read article
image

Real Estate

6 Tips for realtor how to survive a holiday season

Real estate business has its peaks and lull. The holiday season is usually a difficult period for real estate agents since the number of deals, as well as buyers and sellers, decreases greatly. The reason for that is people’s desire to take a vacation, celebrate and just rest. It is also the time when realtors have time to take a break and gather all their strengths for the upcoming season.

Read article Read article
image

Real Estate

7 Things which differ top realtors from others

Real estate business is a tough competition where only 5% of real estate agents manage to get to the top. In fact, it is a goal of every newbie realtor to become once a top real estate agent and they’ll often start off by referring to colleagues as well as resources such as this InboundREM Real Estate Prospecting tutorial and similar guides. At the same time, top realtors behave and act in a different way from their colleagues. Having reached some success in this industry they change their strategies and start acting in a different way. What exactly changes? Look through 7 things top real estate agent do that others don’t.

Read article Read article
image

Real Estate

How to plan a vacation for real estate agent

It is not a rarity that real estate agents have no time for their rest. Any break in the activity may result in a smaller number of leads and a possibility to miss a good deal. That is why they prefer to work all year round and forget about holidays and vacations. If real estate agents who work in the companies have scheduled vacations, independent contractors and entrepreneurs should decide that themselves. Considering a vacation a real luxury they can devote time to it only when there is enough money but such a moment almost never comes. They usually postpone it for better times and they come very rarely. If you are one of those who cannot find time for a vacation but realize the importance of good rest, learn these 3 strategies and never neglect this time.

Read article Read article
image

Real Estate

10 Tips For a Real Estate Agent To Become a MILLIONARE!

The modern era provides many chances for people to become self-made millionaires in different professions. Real estate industry is not an exception. Agents get awesome commissions for their work so there are many possibilities that they can feel confident getting elderly and never hope only on pension. At the same time, it often happens that realtors who have been wealthy during their career turn out to have no savings behind their back and have to get used to living poorly. If you are a real estate agent who wants to have a careless life in the elderly age, consider these simple tips while you are young.

Read article Read article
image

Real Estate

25 Shocking facts every real estate agent should know

Statistics is a science which plays a very significant role in many industries and real estate business in particular. Realtors should always keep up with the trends and stay up to date to confirm their professionalism and awareness of the industry in the eyes of clients. Real estate business is highly competitive so it is very important to be informed about the latest statistics and use this information working with clients and getting more leads. We have prepared real estate agents 25 examples of overwhelming statistics connected with real estate business.

Read article Read article
image

Real Estate

5 tips on how to create an office atmosphere at home

Many people enjoy working from the comfort of their homes, especially if they used to change an office for it. It is possible to forget about a commute, early wake-ups, hunger, smart clothes and make the working process relaxing and comfortable. However, you will spot that working from your bed or armchair does not bring about those great results like a strict office atmosphere. In some time, almost every office employee comes to the conclusion that it is necessary to create an office design at home not to compensate on work efficiency. This solution has especially become incredibly popular with people recently when millions of people had to ‘stay home’ because of the pandemic but still have to complete the same amount of work. It goes without saying that a dining table or a bar top can serve as surfaces for a computer and papers, but they can’t replace a comfortable office place fully. Therefore, it is very important to find space for your home office and put effort to create a comfortable working place following these design tips.

Read article Read article
image

Real Estate

Income of a real estate agent: 4 steps to understanding

The first thing that attracts people in realtor job is a possibility to get a high commission for every completed deal. However, not everyone realizes that every deal includes an abundance of work done and a realtor does not receive the total amount of the commission too. It is necessary to have an understanding that income of a real estate agent can consist of several parts and it depends on the way this person is employed. Most of the modern agents are employees of brokerage companies, so it is possible to count their possible income considering the following 4 aspects.

Read article Read article

If you have any questions we will happy hearing from you

Address

610 West Broadway, Suite 201

Jackson WY, 83001