Real estate purchased and sold directly to or by real estate brokers is referred to as the housing market.
What is the Real Estate Housing Market?
The real estate housing market, also referred to as the housing market, brings together a variety of stakeholders, including homeowners selling their properties, tenants, investors buying and selling properties solely for investment purposes, contractors, renovators, and real estate brokers who act as facilitators in the process of buying or selling a property.
The primary determinants of housing market demand are demographic factors. However, other elements like income, the accessibility of credit, and consumer preferences also matter. The market size is a demographic factor because the demand rises with the number of consumers, and the number of marriages, divorces, and deaths indicates population growth.
Real Estate Housing Market Predictions 2022
Home prices have risen despite factors that typically push prices down, such as higher mortgage rates and a slight increase in housing supply. Even though expensive, the numbers demonstrate the market’s continued resilience.
According to the National Association of Realtors, the median home price has increased each month this year, reaching a record high of $413,800 in June before dropping to $389,500 in August (NAR).
Real estate agents, buyers, and sellers are having difficulty adjusting to a housing market that is very different from what it was a few months ago. According to Rita Tayenaka, owner of Coast to Canyon brokerage in Orange County, California, the buyer and seller are at an impasse, and it’s unclear how it will be resolved.
Tayenaka and her agents advise sellers to look at recently sold homes and set their prices appropriately, but they want to go even higher. “Try it for a few weeks is the conventional wisdom. Tayenaka advises against keeping the house up for an extended period on the market.
Additionally, buyers are growing dissatisfied with how the houses in their price range are being maintained. Over the past two years, sellers have dominated the market, and buyers have been forced to take whatever is offered. According to Tayenaka, consumers now think their desired repairs are “justified by the market.”
One of the factors restricting sales activity is this disconnect. The increase in mortgage rates is another factor.
According to George Ratiu, manager of economic research at Realtor.com, “a household earning the median annual income of $71,000 with a 20% down payment could afford a $448,700 home in January 2022 when rates were 3.1%.” “By contrast, at a 7% mortgage rate, the same household can only afford a $341,700 home.”
Will Home Prices Keep Rising?
It is becoming more and more challenging to purchase a home, and this situation will not likely improve any time soon due to inflation, high mortgage rates, and record-high home prices. According to economists at Fannie Mae, prices will increase by 16% in the upcoming quarter compared to last year’s period.
According to MBA economists, home prices will soon increase. In 2022, prices are expected to rise by 9.8% annually over 2021 and by 2.8% over 2023.
Should I Buy a Home Now or Wait?
In any market, purchasing a home is a very personal choice. Being financially stable is essential before making the biggest purchase most people will ever make: a home. Homes frequently represent the largest single purchase most people will ever make.
Use a mortgage calculator to estimate your monthly housing costs based on your down payment, interest rate, and anticipated home price.
Housing Market 2023
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