What the Experts Say About 2022 Residential Home Buying Trends

2021 was an unprecedented year for the real estate market. Will 2022 be a ‘return to normal’, or will it continue the trend of high prices, low-interest rates, and stiff competition? In this post, we’ll take a look at what the experts have to say about 2022 home buying trends.

Will 2022 Be the Next 2021 for Home Buyers?

In many ways, we’re still waiting for a post-COVID ‘return to normal’. Home buyers might be especially anxious to see a return to a less competitive market. In 2022, it doesn’t look like things will ease up much for buyers. But if you’re buying or selling a home (or thinking about it), it looks like 2022 will be a good year for you.

Real Estate Expert Takes on 2022 Home Buying Trends

We looked at a series of expert predictions on the 2022 home buying market. This consensus emerged.

A minor lull

The Mortgage Bankers Association reported that mortgage applications for new homes dropped 7% in December 2021; similarly, the National Association of Realtors reported a slight decrease in home tours in December as well. However, this doesn’t really signal a downward trend; it’s merely a normal seasonal drop in the housing market.

A slightly less crazy market with slightly higher interest rates

What makes the above statistic important is that we’re seeing the seasonal decrease. In 2021, this seasonal fluctuation wasn’t widely seen. But it doesn’t mark a shift in market direction. CNBC points to the continuation of three major factors – high demand, a shortage of salable properties, and high prices – into 2022. Interest rates will most likely increase, which means mortgage payment amounts will probably go up a bit as well.  

But one that’s still expensive

Real estate marketplace Zillow released its prediction that home prices will increase by 11% in 2022; this is after a record-setting 2021. Why is real estate at such a premium? Blame it on time and the economy; Millennials (the generation born between 1980 and 1996) are in their peak home-buying years, and the 2008 economic crisis seriously disrupted the construction industry.

In short, 2022 is shaping up to be a lot like 2021. We’ll have to see whether experts’ predictions on interest rates and home prices come true, but so far it looks like the demand will continue to be strong.

What Can Home Buyers Do in 2022?

Home buying trends for 2022 point to a highly competitive market. Fortunately, all the standard advice for real estate buyers still holds good:

• Do your financial homework. Before you start looking at houses, find out how much of a mortgage payment you can actually afford. Cleaning up your finances by paying off unnecessary debt and making sure your credit reports are accurate can help you get a better deal on a mortgage.
• Save for a down payment. A 20% down payment can make a big difference in your mortgage payment and your likelihood of getting approved for a house. But if you can’t manage a big down payment, you can take advantage of home-buying programs and non-traditional loans.
• Shop around for the right mortgage. As mentioned above, there are programs and loans out there that may be better for your circumstances. Plus, different lenders have different requirements. Mortgage 1’s expert teams will help you find the right match.
• Get pre-approved. If you’re going to make an offer on a house, being pre-approved for the mortgage amount can make you a stronger contender than someone who still has to secure financing.

Choose AmeriTitle for Home Buying Title Insurance

In today’s fast-paced market, Amertitle helps agents, brokers, buyers and sellers gain peace of mind. We make the closing process hassle-free. Call us today at 586-884-5300 or email us at [email protected] to see how we can help you.