The COVID-19 gave wings to the real estate market in 2021 and it soared high. Low interest rates paired up with the shortage of inventory made the market way too competitive. One wonders, if 2022 will follow into the similar footsteps, as marked up prices and low inventory result in faster turnarounds. 2022 is being predicted as, again, the year of home sellers.
- Supply-Demand Upset:
The inventory available in the market is still too scarce to meet the rising demand of the living spaces. Due to COVID-19, the labor has been short hence the production has slowed by huge margin. There are likely to be more listings during the prime season, but it is still might not meet the growing stipulations and concerns.
2. Rising Interest Rates as Silver Lining:
It is a known fact that the interest rates will be increased this year as well. In conclusion, mortgage rates will rise with them. Now, it is not necessarily a bad thing because people who buy houses with higher mortgage rates tend to live in them rather than flipping them over for profit. It’s good news for the average buyer and will hopefully stabilize the real estate market.
In such uncertain times, first-time homebuyers need to be very careful when looking at their prospects and options. Even with the elevated prices, one should not be overpaying for the property. That’s where we come in. American Mortgage Resource, Inc. is a trusted name in the real estate market. We cater to all the people, whether they are first time home buyers or seeking loans and other finance options. Contact us at (617) 972-8588 and we will help you in buying your dream home.