Getting ready to wade into the busy spring and summer real estate market can be an intimidating venture, especially after the last few years. Prepare yourself by finding out what potential Redlands home buyers need to know about the real estate market in 2022 in order to get ahead of other buyers in your locale.
Interest Rate Hikes
Back in March, the Federal Reserve began the process of raising interest rates in an attempt to head off inflation across the economy.
As the year continues, the Federal Reserve has indicated a willingness to push those interest rates even further with the same intended function, but we aren’t certain where those numbers could ultimately land.
In a general sense, being on top of proposed changes to interest rates in the near future could make a difference in many aspects of the markets. On a more personal level, fluctuating interest rates will affect your monthly mortgage payments for years to come.
Segueing from our previous point, the looming threat of increasing interest rates has instilled a sort of ticking clock perception amongst would-be homebuyers that rippled throughout just about every real estate market across the country.
Nationally, the supply of homes for sale has been outpaced by demand for years. With pandemic restrictions easing more and more over time, buyers have been more ready and willing to begin or resume their home search while now equipped with more savings than in the past.
However, we do anticipate fewer and less aggressive bidding wars for individual properties as demand is slowly satisfied and the willingness to put it all down on a home abates.
Enduring High Prices
Despite this minor slowing of buyer demand, home prices are forecasted to remain high due to the ongoing inflated price of new construction, low inventory, and the seemingly ever-growing presence of property investors.
Any potential buyer should carefully consider their target markets and properties from all angles prior to becoming emotionally attached. This means taking into account not only monthly mortgage payments but property taxes, HOA fees, and the added costs of insuring the property.
Agents Make a Difference
If there was a time to lean heavily on the services and expertise of a real estate agent, now is that time.
Your agent brings a veritable encyclopedic knowledge of the local market along with negotiation tactics to help get the job done right. Those negotiation tactics will come in handy if you end up in a bidding war and either need the advice of your agent to gain leverage or make the choice to walk away before things escalate more.
What it comes down to is buyers pursuing a property with the assistance of an agent will always find themselves in a better position from the initial offer until closing.
Be Honest with Yourself
One of the most important things a buyer needs to keep in mind entering the market in 2022 is that with enough time they will find the right, affordable property for them.
Crunching the numbers and budgeting appropriately is the one and only place to begin your home-buying journey. Allowing yourself a reasonable timeline is also key in order to protect yourself from getting whipped into a frenzy because of FOMO generated by historically high pricing, buyer competition, or the possibility of increasing interest rates.
Always give yourself some breathing room to avoid making rash decisions that could cause you issues in the future.
Help Navigating the Changing Real Estate Market in 2022
If you’re worried about navigating the ins and outs of the real estate market of 2022, contact our experienced team today at (951) 232-9704!