What Are The Current Trends For Home Sales in the USA?

What Are The Current Trends For Home Sales in the USA?

The real estate market has been nothing short of a crazy ride both in terms of home sales and homes bought in the US since the start of the CoViD-19 pandemic.

There has been a record prices appreciation, rock bottom mortgage rates and cutthroat competition among buyers for the better part of the last two years. However, experts say that 2022 might finally bring more equilibrium to the home sales industry. It might not be just the way it was before the pandemic but it should be a little less frenzied.

To make things easy for you we have listed key trends that you should look out for if you are in for home sales in the US.

1 Mortgage rates will increase

Mortgage interest rates were seen at an all time low in early 2021, with new 30-year fixed loans averaging less than 3 percent in some weeks.

We have a full analysis of what to expect from mortgage rates this year, but the key thing to understand is that those record lows are most probably behind us. Experts have estimated that mortgage rates are expected to slightly move up, to an average of almost 3.5%.

While that means refinancing opportunities for existing homeowners may not be that good in the new year, but borrowing will still be affordable for almost all new buyers. But these rates are still low compared to the mortgage rates before the pandemic that were almost up to 4%. But we have to work with what we get and right now this is what we have.

2 Steady supply chain means more home sales postings

One of the main reasons for hypercompetitive pandemic housing market was builders struggling to arrange materials as there was a decline in global supply chain. That meant newly-built homes were slow to come on the market, which was compounded by hesitance on the part of existing homeowners to list during lockdowns.

Without a doubt US still has low inventory levels because things are selling faster than we keep pace. But assuming that the worst days are behind us, it is estimated that home inventories should grow in the year 2022. Only if there is no major resurgence of the pandemic that could lead to the manufacturing plants.

In 2021 more people will feel comfortable to sell their homes, so there is a good chance that we can see an increase in inventory. We will also witness a boost in supplies and home sales are expected to hit 5 million in 2022.

3 Price stability and little competition between homebuyers

The intensity that has characterized the real estate market recently should slow down a bit this year. This would give would-be buyers a better shot of making it to closing, while sellers should have a little less opportunity to get their heart rates pumping.

It is estimated that prices will start to moderate this year because no industry can sustain double digit price increases each passing year. This moderation might help offset rising mortgage rates also.

It is also estimated that home prices might also increase around 5 % in 2022. This is good for sellers because it means they are likely to hold onto their equity gains, but it may require same recalculation when it comes to weighing offers.

For home sellers it is expected that their houses could spend a little more time on the market. They should not expect to sell their houses within 24 hours. It will take time but home sellers should remain optimistic during this year.

4 Shifting Home purchaser’s preferences

A few pandemic patterns are digging in for the long haul, be that as it may. Recently adaptable work plans for some changing individuals search for in a home. One of the main drivers that would change buyer’s preferences would be the opportunity to work from home.

Less expensive areas in the Sun Belt will perform better than the more-expensive markets. And it is not just geographical preferences that have shifted. Working from homes means buyers are looking for different layouts than they were searching for before the pandemic.

It is expected that home sales of houses built on a closed concept would increase in the year 2022, because more people are expected to work from home and noise does not carry easily between rooms that has doors.

Advice for Buyers and Sellers

Regardless of the economic situations, the fundamental guidance for individuals hoping to buy and sell property remains the same. It’s significant in this market to be ready
Get with your real estate professional, understand the market, have them instruct you available elements regarding the local area you’re in. And if you don’t have a real estate agent that guides you for you home sales then Thompson Real Estate is one of the best options to solve all your problems.

Just reach out to them and they will guide you in the best possible way about all your real estate issues.

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