If you’re on the fence about buying property at the end of 2021, you might be surprised to learn that it’s not such a bad idea. 2021 was an incredible year for the housing industry, as far as sellers are concerned. Homes sold at record speeds and prices, while interest rates dipped to some of the lowest numbers in history. As things start to slow down, it’s natural to wonder “what’s next?” Here are a few things to consider about the housing market if you’re thinking about buying in the next few months.
MORE INVENTORY AVAILABLE
Over the summer the inventory shortage definitely made the market a seller’s paradise. Bidding wars were the norm, and homes went well above asking price. As the fall brought cooler temps, people believed the housing market would follow suit. The cool-off, however, wasn’t as drastic as some expected. Sellers who weren’t planning to sell, decided to list their homes anyway, because why not in this market?! Now, more properties are expected to become available over the next few months as more sellers take advantage of the hot market.
As more sellers list their homes, increased inventory will cause the market to correct itself. Buyers will be able to purchase a home at a rate closer to actual home value. This trend is a more beneficial environment for both buyers and sellers and appears that it will carry through the end of 2021.
RISING INTEREST RATES IN 2022
Murmurs about rising interest rates in 2022 seem to be coming to fruition. According to sources, it’s predicted that early 2022 will see the first spike in interest rates. While this isn’t set in stone, if interest rates increase, we will start to see the housing market taper off both selling- and buying-wise due to less consumer spending. Purchasing a home before interest rates rise seems like a smart and safe move financially.
WILL THE HOUSING MARKET CRASH IN 2022?
According to experts, it’s unlikely the housing market will crash in the next year. As long as new buyers continue to enter the market and inventory stays low, the market should remain stable.
Home prices have nearly tripled over the last year, which has stimulated the economy. Experts predict that the market appears to continue to increase in 2022, however it might be at a slower rate than originally thought.
MAKE HAWAII YOUR HOME IN 2021
If you’ve been unsure about buying, now is the time to make your move! With low mortgage rates lingering and more properties coming available over the next few months, you now have the keys to find the home you’ve always dreamed of. Whether you want to sell your current home or buy your dream Hawaiian home, Contact me today to get started!
Aloha and welcome to Hawaii.