Closing Out the 2022 Real Estate Market

What a year it’s been! It’s hard to believe how much has happened this year alone…especially in the Real Estate market! This time last year, we saw 30-year mortgage rates averaging 3.11% and buyer demand that reached historic levels. We reached a point where many buyers felt like there was nothing they could do to get their offer accepted, as they competed with dozens of other offers on each home. We saw agents seeking creative ways to have offers accepted; like waiving inspections and other contingencies, offering to pay sellers’ closing costs, and really anything they could do to help make their clients’ offer stand out from the rest.

This fall, we saw interest rates reach a peak of over 7%, which did decrease the pool of buyers actively looking, but not by as much as predicted. We also started to see some price reductions on homes and less competition on homes on the market. Rather than buyers competing against 12+ offers on average, it became a little bit easier as they competed against 5 or 6 other offers instead. There is still competition, and homes are still selling for over asking price, but the days of waiving every contingency and paying well over asking price may be behind us.

Also, fortunately for buyers, mortgage rates dropped again last week as the average 30-year mortgage rate is back down to 6.49%. Although rates are still double what they were this time last year, we expect rates to stabilize around 6% to finish out this year, as long as inflation continues to slow down.

What’s the biggest takeaway?

I’ve said it before and I’ll say it again. Don’t wait to make your move based purely on the real estate market. If this year has taught us anything, it’s that things can change very quickly and although we can make predictions, no one has a crystal ball to know exactly what’s going to happen. My advice, is to focus on what you can control ie. improving your credit score, building up your savings, getting a clear picture of how much equity you have in your current home… anything you can do to get yourself prepared no matter what’s happening in the market and in our economy.

Of course, this is all much easier said than done. I’m not suggesting that it’s easy, especially dealing with how expensive everything seems to be these days. But, focusing on these actionable steps is going to get you in a better position so that when it makes sense to make a move, you’re ready to do so.

It’s never too early to start working on your goals for the new year! If you need any help with ideas for tackling your finances, head over to my Youtube channel (linked here), to check out my recent video series. I also recommend speaking to a mortgage lender to get some of your questions answered and see if there’s any changes you need to make before moving forward with buying or selling your home. If you don’t have a mortgage lender, fill out your info. here and I’ll follow up with you with some options.

As always, don’t hesitate to reach out to me if you have any questions!