Here’s How the 2022 Housing Market Is Shaping Up
As summer 2022 looms near, and the buying and selling of houses ramps up after the winter season, many are asking: Is it still a seller’s market? The short answer is, yes. Here’s what to know if you’re planning to buy or sell a home in 2022.
It’s Still (Mostly) a Seller’s Market
While the housing market is inching back towards something resembling normalcy, 2022 is predicted to be another whirlwind year. More sellers are expected to enter the market, but it will likely stay a “seller’s market.”
“Seller’s market” is in quotes, because savvy home buyers connected with a skilled real estate professional who knows the local market can still see house buying success.
Inventory Is Still Limited & Homes Are Expected to Sell Quickly
Inventory is expected to grow slightly in 2022 – by 0.3% on average, according to Realtor.com. Sellers have not been as eager as buyers in the past couple of years, but indications show that an increasing number of current homeowners plan to sell in 2022.
Those looking to sell a home this year are in a good position. Although the bidding war frenzies are expected to calm some, for the most part, appropriately-priced homes in good conditions are expected to continue to sell quickly.
Home Prices & Mortgage Rates Are Rising
With plenty of buyers on the market, home prices are expected to rise in conjunction with mortgage rates, meaning higher monthly payments. Mortgage rates are predicted to rise slowly, up to 3.6% by the end of 2022.
Rent Increases Are Driving First-Time Home Buyers
There are roughly 45 million people in the country who are of prime first-house-buying age (26 to 35). In combination with that number is the fact that rent is increasing significantly nationwide – up 7% by the end of 2022, according to RedFin.
The increase in first-time home buyers is expected to outpace the slight inventory recovery.
The Lake George Region’s Housing Market Is Strong
The housing market in Lake George, Lake Placid, Bolton Landing, Saratoga Springs, and other areas in the Adirondacks and beyond is thriving. Those living in New York City, or close to it, flocked upstate during 2020 and 2021, driving up the demand.
And, as people continue to work from home, and can therefore virtually live anywhere they want, the Lake George region is understandably very attractive. According to an April 2022 Ownerly.com article, New York State is one of the top three states in the country for remote workers.
Moreover, as covered in my Why Buy a Second Home in Lake George piece, the southern Adirondack commercial real estate market is booming; this bodes well for the residential market.
In the market to buy or sell in the region? Contact me today to discuss your specific needs, and I can help personalize a plan for you to be successful with your 2022 real estate goals!