If you're considering buying or selling a home, the present state of the housing market may have you wondering if now is still a good time to do so. Do I need to move this year? Let's look to the experts for predictions on what the second half of the year will bring for residential real estate to help with those answers.

 

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Depending on inflation, mortgage rates could change.

 

Although where mortgage rates will go in the coming months is one of the main concerns for all buyers, no one has a crystal ball to predict exactly what will happen in the future. The record-low mortgage rates during the epidemic were an exception, not the rule, according to housing industry analysts.

 

As a result of the Federal Reserve's response to growing inflation this year, rates have increased by more than 2%. Mortgage rates will certainly change if inflation keeps on rising.

 

The current mortgage rate is a crucial issue to take into account whether you're purchasing your first home or selling your present residence to move. Rate increases affect affordability and your buying power. Working with a team of professionals is essential to get competent guidance and make the best choice possible.

 

Homes for sale are expected to continue to be more plentiful.

 

There are more houses for sale this year, especially this spring. This is partly because more homeowners are putting their homes on the market, but it's also because higher mortgage rates have lessened the strength of the demand from buyers. The rate of home sales is slowed by moderating buyer demand, which contributes to an increase in inventory.

 

According to experts, growth will continue. The inventory projection for 2022 on realtor.com was recently updated. They significantly upped their forecasts for inventory gains in the most recent report, ranging from a 0.3 percent increase at the start of the year to a 15.0 percent increase by the end of 2022.

 

Forecasts for home prices indicate continued appreciation

 

The pandemic caused housing prices to rise by unprecedented amounts since there were too few properties available for sale compared to the number of people trying to buy. According to CoreLogic, property values increased by 15% in 2021, and they have been rising ever since.

 

Even if there are more homes for sale today, there are still more buyers than there are available properties, which keeps pressure on home prices upward. Because of this, analysts do not anticipate a drop in prices; rather, they predict that they will continue to rise this year, albeit at a slower rate.

 

The current rate of home price growth is unsustainable, and if mortgage rates rise and there is more inventory, home price growth will be slower but it is unlikely that prices would fall.

 

If you currently own a home and are considering selling, know that its value is not expected to decrease. However, delaying to buy your next home could result in higher housing costs as home prices continue to rise. Because of this, it can make sense to buy a home now rather than later if you're considering doing so or are ready to move. However, you can be confident that if you purchase a property, the price growth will assist increase the value of your investment.

 

Contact a real estate agent to go through your objectives and the future so you can choose the ideal moving strategy.