February 7th 2022

Ever since the onset of COVID-19, the housing market has been on a wild ride. Over the past 2 years, we’ve seen historically low inventory and mortgage rates. This led to homes spending very little time on the market and closing for record high price points. While things have settled down ever so slightly, a question mark still looms over what exactly 2022 will bring. Experts have stated that buyers can expect more of the same and sellers will continue to have the upper hand; however, the market will become less competitive than it has been. With that being said, keep reading for some insight to take with you this year if you’re planning to buy a home!

Inventory will remain low, but…

…the gap is shrinking! It wasn’t just attractive mortgage rates that contributed to low inventory but also supply chain issues and labor shortages. Builders are starting to ramp up production, but this will take some time. Although inventory will still be unable to meet demand this year, things are looking up long term.

Interest rates are on the rise

The Federal Reserve is expected to raise interest rates in 2022 which isn’t entirely a bad thing. With higher interest rates come higher mortgage rates - this will decrease the number of potential buyers which means less competition.

Prices are staying high

In spite of what you’ve read up until this point in the blog, tight supply, high demand, and interest rates still on the lower side mean that bidding wars are still very likely for the time being. Zillow predicts that home values will rise by 11% in 2022.

Do your research and be prepared

The best thing you can do right now as a buyer is prepare. When the market is in this state, things move extremely quickly, and not being ready to close a deal can cost you. Get pre-approved and extend offers as soon as possible.

We always recommend working with an experienced realtor to help you navigate the homebuying process. If you’re on the hunt for a home but have been putting off making serious moves, give us a call! We will walk you through all the motions seamlessly and efficiently. Let’s find you your Cape May County dream home today!