The housing market in 2021 is continuing to explode like fireworks. Experts are still seeing a post-pandemic rebound—we’re talking steady mortgage rates, job recoveries, and the law of supply and demand all working together to make home sales go kaboom! There’s high demand with super low inventory, but buyers are still rearing and ready to enter the market. (Source: Newscentermaine.com)

Remember, 2022 housing market predictions can only give you an idea of what to expect if you buy or sell a house in the coming months. But never let them control your housing decisions—only your personal situation and finances should do that.

 As to some real estate specialists, the real estate market is expected to remain growing in 2022, and it’s mainly driven by the lasting impact the pandemic is having on our lifestyles. As many of us spend more time at home, we’re reevaluating what “home” means and what we may need in one going forward.

In some ways, it could get easier to buy a house in 2022. Next year could be a good time to buy a home, due to an ongoing rise in inventory. While it might be easier to buy a house in 2022 from a competition and inventory standpoint, prices will likely be higher as well.

Check these 4 reasons why people are reconsidering where they live and why they’re expecting to buy a home next year. 

1. Avoiding House Repairs

Many homeowners have testified that they would also rather buy a new home than go through the process of fixing up the one they have. According to the 2020 Profile of Home Buyers and Sellers report 44% of home buyers purchased a new home to “avoid renovations or problems with the plumbing or electricity.” Homeowners practically want a stress-free home wherein they can relax and have a guarantee about their safety. Also, you may try to consider and imagine two families can look for homes in the same city but come away with completely different home-buying experiences depending on the neighborhood they’re looking in, the budget they’re working with, and more. Always consult with a Realtor to get the best sense of what's actually happening in the area you want to live in. 

2. Working From Home

Remote work is a new normal for many businesses and jobs, and it’s lasting longer than most expected. Many in the workforce and industry today are discovering they don’t need to live close to the office anymore but instead, they can get more for their money by moving a little further outside of the city limits. Having a comfortable space to work at gives you peace and balance, not needing to feel all surrounded by just walls, tables, and piles of documents in your office spot but having the right home where you can find convenience and comfort means everything.

3. More Outdoor Space

Time in nature can eliminate some of the contributing factors that are somehow mind bothering.

Even today, people living in houses prefer to have a house with more outdoor space because they value their privacy and need their own space. Those living in apartments and townhomes are often looking for extra square footage, both inside and out. Another new priority for homeowners is having more usable outdoor space. Being at home is driving those in some areas to seek less densely populated neighborhoods so they have more room to stretch their legs. People want to feel warm, safe, and happy. Expert says time outdoors can reduce mental fatigue, increase creativity, and even improve your mental and physical well-being. 

The reality is that local markets don't always follow national trends. The suburbs were especially hot during COVID-19 as homebuyers looked for ways out of crowded cities and more room to work in.

4. Low Mortgage Interest Rates

According to Freddie Mac, the average 30-year fixed interest rate today is 2.65%. Many wonder how low these rates will go and how long they’ll last. As an economist Len Keifer have advised;

“If you’ve found a home that fits your needs at a price you can afford, it might be better to act now rather than wait for future rate declines that may never come and a future that likely holds very tight inventory.”

But rates fluctuate daily — even by the hour — so it's a good idea to lock in your mortgage rate when you have a good one before the change occurs.

There are plenty of would-be homeowners right now hoping to time the market and wait for home prices to fall. The trouble is, even experts have trouble correctly predicting the trajectory of the housing market: there were plenty of people predicting that the housing market would slow down and cool off in 2021 (and we can see how that turned out). 

Potential homeowners who have been patiently waiting and saving for their new home have been hit with a startling reality: the housing market is so hot that according to Redfin’s latest data, over half of all homes are selling for over asking price right now. Additionally, the median sale price has jumped about 25% since the same time last year. Not surprisingly, plenty of would-be homebuyers are now asking themselves: should I buy a house right now or wait until 2022?

If you’re Not Ready to Buy Today, How Can You prepare for 2022?

You may not be ready to buy today, but there are plenty of ways you can get ready to buy - so that when the time comes, you’re able to get your dream home.

Here’s what you should do:

Check and talk with us. Realtors vary in experience, expertise, and areas of specialization, so don't just pick the first person every other website recommends to you.

We all want to have someone we can communicate well with, someone that we like, and someone we feel like we can trust. An agent that might be a good fit for a different personality type may not be a good fit for you. So I think it’s always important to get to know the person, read their reviews, do due diligence on the agent, and make sure they’re a good match for you.

Get your Financing in Order.

If you’re better prepared to finance a home, ultimately the home buying experience will be less stressful. Use this year to improve your credit score, save money for the down payment and closing costs, and work on your debt-to-income ratio. Meeting with a mortgage advisor ahead of time can help potential homeowners get ahead of issues that may hold them back from qualifying for their dream house.