The Top Real Estate Markets For 2022

Real estate sign in front of a house for sale in a nice suburban neighborhood. Digital 3D render.

Real estate sign in front of a house for sale in a nice suburban neighborhood. Digital 3D render.Realtor.com created a list of the top housing markets for 2022 whose ranking is based on the combined yearly percentage growth in both home sales and prices expected in 20222 among the top 100 largest markets in the country. The list reflects data from recent home sale prices, the number of new sales and new construction as well as previous and anticipated household growth for the area. The top 10 metros on the list are:

  1. Salt Lake City, UT
  2. Boise, ID
  3. Spokane, WA
  4. Indianapolis, IN
  5. Columbus, OH
  6. Providence, RI
  7. Greenville, SC
  8. Seattle, WA
  9. Worcester, MA
  10. Tampa, FL

For more information on the top housing markets for 2022, click here.

Are you interested in purchasing a home or refinancing your current home this year? I would love to help! Call me today!

Affordable Housing Markets That Remain Hidden Gems

Street of suburban homes

Street of suburban homesRecently, the National Association of Realtors conducted a report of the 2022 Housing Market Hidden Gems, which reveals the top ten undervalued metro area housing markets in the U.S. This report measured wages, jobs, population growth, and housing permits over a three-year period. Additionally, the report measured the migration and percentage of the population between 25 and 44 years of age. The top ten markets in alphabetical order are:

  1. Dallas, TX
  2. Daphne, AL
  3. Fayetteville, AR
  4. Huntsville, AL
  5. Knoxville, TN
  6. Palm Bay, FL
  7. Pensacola, FL
  8. San Antonio, TX
  9. Spartanburg, SC
  10. Tucson, AZ

While many of these areas benefit significantly from remote work as buyers feel more comfortable moving out into less expensive cities, all of them had an estimated property value below the national median of $297,506. Of these cities, Dallas, TX proved to be the most expensive location, while Spartanburg, SC is the least expensive.

For more information about this list, click here.

2022 Housing Market Predictions

2022 Housing Market Predictions2

2022 Housing Market Predictions2After a busy 2021 housing market, experts are revealing what we should expect to see in 2022. Following are a few predictions:

Increased mortgage rates – While mortgage rates have remained near historic lows for many months, National Association of Realtors economists expect the 30-year fixed mortgage rate to increase by the end of 2022 as the Federal Reserve increases interest rates to battle inflation.

Increased home prices – Home prices in 2021 increased by almost 20% from the year before. Experts predict that home prices will continue to rise in 2022, but only by abut 3-6%.

Limited inventory – Throughout 2021, inventory remained low and bidding wars were prevalent. During 2022, inventory is expected to increase slightly but will likely remain low enough to keep bidding wars in play.

For more information on 2022 housing market predictions, click here.

If you are interested in purchasing a home in the coming months, give me a call! I would love to help with your financing.

First-Time Homebuyers Are Willing to Pay More

The mental key from door with wooden trinket in shape of house in woman's hand

The mental key from door with wooden trinket in shape of house in woman's handAccording to a recent study by Realtor.com, first-time homebuyers are tiring of bidding wars and ready to pay more to become homeowners. Survey results showed that 75% of first-time homebuyers who haven’t been able to close on a home in the past year plan to continue trying and more than 90% plan to offer more than 20% down when possible. Additionally, the number of buyers looking for homes between $500,000 and $750,000 increased from 6% to 13% from the spring to fall of 2021 and the number of buyers looking below $350,000 decreased from 75% to 62%.

Further elaborating, George Ratiu, manager of economic research at Realtor.com, said that “First-time homebuyers internalized how competitive the real estate market has been this year and have been willing to adjust their budgets, strategies, and expectations. Low mortgage interest rates have allowed first-time homebuyers to stretch their budgets. And many first-time homebuyers who have been able to work remotely have been able to save a little more for a down payment.”

As the housing market has remained competitive, many buyers have lost bidding war after bidding war and, despite the steadily increasing home prices nationwide, are willing to pay over asking price to win. Almost 30% of buyers surveyed responded that they are willing to offer 30% over the list price of a home, compared with none when a similar survey was conducted in the spring.

To read more, click here.

Winter Housing Market Expected to Show Relief

For Sale and Coming Soon realtor sign in front of large brick single family house in expansive snow cover yard in mid winter

For Sale and Coming Soon realtor sign in front of large brick single family house in expansive snow cover yard in mid winterWhile the housing market has reflected extremely low inventory and high prices nationwide for several months, experts say that it could experience some relief in the coming weeks. Unfortunately, inventory will likely remain low, but prices are beginning to decrease, and the holidays should provide some relief on the number of buyers looking for homes.

During the fall, Realtor.com conducted a survey in which they found that 77% of sellers were willing to accept an offer as low as 7% below asking price on their homes. These responses were up from 54% of buyers in the spring.

Additionally, while interest rates have increased slightly, they remain low. The Federal Reserve has stated that it does not plan to increase rates significantly until the U.S. economy has reached full employment and inflation has leveled.

Danielle Hale, chief economist of Realtor.com elaborated that “through the end of the calendar year, buyers will get a break. I mean this in the sense that buyers are likely to have more time to make decisions, less competition, and a bit more negotiating power with sellers.”

For more information on the current market and predictions for the future, click here.

Real Estate Market Trends Defining the Remainder of 2021

Real estate

Real estateIt’s no secret that the late 2020 and early 2021 housing market has been hot nationwide. While we’ve seen many trends filter in and out over the last several months, experts say there are few that are here to stay:

Inventory problems – Throughout the entirety of 2021, we have seen historically low housing inventory across the US. The low inventory coupled with the high demand for housing has caused buyers to compete for properties offering prices far above the listing price. As we continue into the rest of 2021, low inventory may slightly improve, but for the most part is expected to stay.

Low interest rates – The low interest rates we have seen through 2020 and 2021 caused not only a refinance boom, but also an increase in interest to purchase. While home prices are higher than average, buyers can offset this by locking in a low interest rate. According to real estate professionals, rates are expected to stay relatively low through the rest of the year.

Increased tech – The COVID-19 pandemic forced the mortgage and real estate industries to go digital on many of their processes. While some of this has gone back to the way it was done pre-pandemic, many of the digital processes such as virtual home touring and 3D renderings will likely stick around.

To learn more about trends to look for in the remainder of the 2021 market, click here.

 

Cities Leading the Hot Housing Market

Phoenix, Arizona, USA Downtown Skyline Aerial.

Phoenix, Arizona, USA Downtown Skyline Aerial.

The most recent edition of S&P CoreLogic Case-Shiller Home Price Index reported a 18.6% annual gain in home prices in June, up from 16.8% in May. This marks the third consecutive month of record growth across the U.S. in the 30-year history of the index. According to the report, the largest price gains in recent months were in the following markets:

  • Phoenix, AZ
  • San Diego, CA
  • Chicago, IL
  • Boston, MA
  • Charlotte, NC
  • Cleveland, OH
  • Dallas, TX
  • Denver, CO
  • Seattle, WA

A separate survey conducted by the Federal housing Finance Agency showed that home prices rose almost 5% between the first and second quarters of 2021, which adds to the 40 consecutive quarters of rising home prices. States leading these increases were Idaho, Utah, Arizona, Montana, and Rhode Island.

To learn more, click here.

Can I help you with your home financing needs today? Give me a call!

Fannie Mae to Include Rent History in Mortgage Approval

Mortgage

MortgageFannie Mae aims to make loans more accessible to homebuyers by including rent payments as part of the mortgage approval process. This action is intended to help borrowers with limited credit histories have better accessibility to home loans.

According to an article by Realtor.com and The Wallstreet Journal, Fannie Mae will start helping lenders factor in borrowers’ history of rent payments with mortgage applications beginning in September. While including rent history will be an option, Fannie Mae does not require lenders to consider rent history if a borrower has a credit score that meets the criteria. Typically, credit reports do not include rent payments as most landlords do not report data to credit-reporting firms.

Speaking about this shift, Hugh Frater, Fannie Mae’s chief executive, said: “In some markets, it’s just as expensive to rent as it is to own. Many renters have the history of making payments, which in my opinion should be equally and fairly considered in their ability to pay a mortgage.

Changes to Fannie Mae’s underwriting system will allow them to automatically identify rent payments from an applicant’s bank account information.

To learn more about this change, click here.

If you are interested in purchasing a home or refinancing your current home, call me today!

America’s 10 Most Affordable Markets

Aerial view of suburban houses and sunset sky - West Chester, Pe

Aerial view of suburban houses and sunset sky - West Chester, PeWith the soaring prices of real estate nationwide, it can be tough to find areas with more reasonably priced homes. A survey was recently conducted by the data team at Realtor.com to identify America’s most affordable metro-area housing markets. After analyzing the 300 largest metros in the U.S., following are the 10 that had the lowest median home price in July 2021:

  1. Pottsville, PA
  2. Peoria, IL
  3. Terre Haute, IN
  4. Youngstown, OH
  5. Huntington, WV
  6. Saginaw, MI
  7. Davenport, IA
  8. Albany, GA
  9. Wichita Falls, TX
  10. Joplin, MO

To learn more about the market in these cities, click here.

Are you interested in purchasing a new home or refinancing your current home? I’d love to help! Call me today.

US Home Prices Jumped During the Second Quarter of 2021

A neighborhood of new homes in a suburban community in the rural

A neighborhood of new homes in a suburban community in the ruralDuring the second quarter of 2021, as extreme demand continued to overwhelm the housing inventory, home prices soared nationwide. According to the National Association of Realtors (NAR), the median sales price for single-family existing homes was higher compared to the second quarter of 2020 in 182 out of the 183 metro areas surveyed. In 94% of those metro areas, prices rose by more than 10% from the year before.

Over the past year, low interest rates and increased remote work have sparked demand in housing across the country. As a result, housing inventory is a record lows, which is driving up home prices. In some areas, prices are increasing so swiftly that they are outweighing the benefits of low mortgage rates. However, experts predict that the market may begin to slow slightly as we move forward into the end of 2021 and beginning of 2022. NAR’s chief economist, Lawrence Yun, said that “the housing market looks to move from ‘super-hot’ to ‘warm,’ with markedly slower price gain.”

For more information on the current market, click here.

Are you interested in purchasing a home or refinancing your current home? I’d love to help! Call me today to set up an appointment so we can review your financial goals.