Real Estate Trends
The real estate market is always changing. These are some real estate trends to look out for in 2022.
Increase om Foreclosures
Even with people struggling there have not been a lot of foreclosures on the market. This was due to a foreclosure ban for a short time. With this ban coming to an end soon there will be additional foreclosures to hit the market. The forbearance period is going to be coming to an end. This will cause people to be in a tough spot making the number of foreclosures increase.
Decrease in Prices
Prices have been very high in the past year. The high prices are about to end. They are going to slowly decline. It is predicted that the prices of homes will decrease 7 percent in the next year. This will make homes more affordable for buyers.
Even with the prices of homes set to decrease mortgage rates are said to be on the rise. This is in part due to inflation. The Mortgage Banking Association has stated that the increase in interest rates can rise up to 4 percent.
It seemed that more people were looking to purchase a home than there were homes on the market. This is going to change. The homes were not on the market long and some buyers got several offers above market value for the home. There is not going to be a huge increase in homes for sale but there is going to be additional homes on the market for buyers to select from.
The market is predicted to go back to normal in 2022. There will be more homes on the market and they will be seeing for closer to market value. While mortgage rates are going up home prices will be going down.