Will 2022 be a continuation of the sellers’ market we’ve been experiencing over the last 24 months or more? Without a doubt, the answer is yes! And while that is great news for homeowners, there are also signs that the double-digit growth rate in home values seen in 2020 and 2021 may start to slow down a bit, and one of those markers is the expected increase, although still at historical lows, in mortgage rates.
What does this mean for today’s sellers and buyers? There are many factors that can affect the housing market besides the current borrowing rates, including the economy, housing demand, and demographics. The Jersey shore area continues to experience a severe shortage of available home supply as even more buyers, many of them with new flexible work arrangements, look to our shore towns to plant their roots.
The local economy is improving, wages are going up, and demand for homes is high. These factors will keep home values rising. An increase in interest rates, as well as the cost of living overall, however, can dampen a buyer’s purchasing power, which can have the effect of slowing the growth rate of home prices.
Sellers who have been sitting on the sidelines waiting for the right moment to sell their homes should note – now is the best time to take advantage of prime market conditions and put your relocation plans in motion.
And when you're ready to take the next step, we are here for you. Give us a call at 732-449-4646 and speak to a Gallery representative who can provide you with the guidance needed for the best sale results possible.
The Gallery Residential Brokerage