If you’re like many homeowners, you may have been wondering about two things:
• Will my home’s value go up this year? • Is now the right time to sell?
The short answers are, yes, home values will most certainly rise, and yes, if you are thinking about selling, you may be better off selling sooner rather than later.
Recently, Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), outlined his real estate market outlook for 2022. Yun’s assessment reinforced what many of us here at The Gallery have been predicting – that more homeowners who have been waiting for the pandemic to pass will finally put their homes up for sale this year, which will have the effect of easing the severe shortfall of available homes and in turn, ease the fierce competition among buyers.
The result? Home sales are still expected to soar in 2022, but there will also be some relief for buyers as the increased inventory could result in fewer multiple offer situations. Add in the expected rise in borrowing rates, and the market may see home value appreciation start to gradually taper off from the double-digit growth levels seen since the pandemic began.
In fact, 30-year fixed mortgage rates have already ticked up nearly half a point since the beginning of 2022, to 3.67% on January 21, from 3.2% on January 3 according to MortgageNewsDaily.com. Of course, lending rates fluctuate daily. But while they are still low, buyers may have to adjust their top purchasing amount to account for higher rates. Over time, this can have the effect of slowing the rise in home values as buyers exercise restraint on purchase offers.
There are other factors that will help increase the availability of home supply, as well. New home construction will increase as materials and appliances are more readily available. In addition, as the mortgage forbearance program comes to an end, more homeowners will decide to sell.
If you have been planning to sell your home this year, your best bet may be to get it on the market as soon as possible. Selling now, instead of later in the Spring or Summer, when most sellers typically list their homes, will give you a head start on the competition and potentially net you a higher sales price.
We are ready to help! 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.
For more insights on the 2022 housing market, or to discuss any question you may have, send us an email at info@TheGalleryNJ.com
The Gallery Residential Brokerage