What Does the Rest of the Year Hold for the Housing Market?

If you’re thinking of buying or selling a house, you’re at an exciting decision point. And anytime you make a big decision like that, one thing you should always consider is timing. So, what does the rest of the year hold for the housing market? Here’s what experts have to say.

The Number of Homes Available for Sale Is Likely To Grow

There are early signs housing inventory is starting to grow and experts say that should continue in the months ahead. According to Danielle Hale, Chief Economist at realtor.com:

“The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”

  • As a buyer, having more options is welcome news. Just remember, the housing supply is still low, so be ready to act fast and put in your best offer upfront.
  • As a seller, your house may soon face more competition when other sellers list their homes. But the good news is, if you’re also buying your next home, having more options to choose from should make that move-up process easier.

Mortgage Rates Will Likely Continue To Respond to Inflationary Pressures

Experts also agree inflation should continue to drive up mortgage rates, albeit more moderately. Odeta Kushi, Deputy Chief Economist at First American, says:

“… ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.”  

  • As a buyer, work with trusted real estate professionals, including your lender, so you can learn how rising mortgage rate environments impact your purchasing power. It may make sense to buy now before it costs more to do so, if you’re ready.
  • As a seller, rising mortgage rates are motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a trusted real estate advisor to decide how to time your move.

Home Prices Are Projected To Continue To Climb

Home prices are forecast to keep appreciating because there are still fewer homes for sale than there are buyers in the market. That said, experts agree the pace of that appreciation should moderate – but home prices won’t fall. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:

“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.” 

  • As a buyer, continued home price appreciation means it’ll cost you more to buy the longer you wait. But it also gives you peace of mind that it will likely grow in value once you do buy a home. That makes it historically a good investment and a strong hedge against inflation.
  • As a seller, price appreciation is great news for the value of your home. Again, lean on a professional to strike the right balance of the best conditions possible for both selling your house and buying your next one.

Bottom Line

Whether you’re a home buyer or seller, you need to know what’s happening in the housing market, so you can make the most informed decision possible. Connect with a real estate advisor to discuss your goals and what lies ahead, so you can pick your best time to make a move.

Source: https://www.keepingcurrentmatters.com/2022/05/31/what-does-the-rest-of-the-year-hold-for-the-housing-market/?utm_campaign=Blog_Promo&utm_medium=email&utm_source=email-automated&utm_content=DailyBlogSubscription&utm_term=BlogPost

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After an initial downturn at the beginning of the pandemic, the housing market in the New York region has seen price gains in the double digits on co-ops, condos and houses in the last couple of years. The reasons for the run-up were many. Covid significantly disrupted the usual patterns of buying and selling homes, which sharply crimped supply. But there was also a pent-up demand for homes outside the city, and some buyers were able to use the savings they had been stockpiling to make such a move. It took longer, but the sale and rental markets in New York City have come roaring back to match or surpass prepandemic levels. To look at the real estate market in New York City in the clearest light, the appraisal firm Miller Samuel tracked median prices for the last two years, revealing where the median settled in the fourth quarter of 2021 compared with those from 2020 and 2019. Median Prices in the Boroughs Prices have increased in all boroughs since the fourth quarter of 2019. Source: Miller Samuel/Douglas EllimanBy The New York Times “The median gives a more realistic, less volatile, and steadier indicator,” said Greg Heym, the chief economist of the brokerage Brown Harris Stevens, who added that it can be best understood like a median line on a highway: a midpoint measurement that divides prices right down the middle. “It doesn’t care how high the highest sale is.” And because median prices are lower than average prices these days, he said, focusing there can perhaps give buyers a bit of hope. “They may realize that they can find something that is relatively affordable, compared with what they always read, which is about multi-million-dollar apartments,” Mr. Heym said. Take a look at the homes that are available at or close to the median prices in the five boroughs. Manhattan Median price: $1.165 million After the coronavirus began to pummel the city in the winter of 2020, Manhattanites were more likely than other city residents to pick up and move. More people relocated from Manhattan to places like the Hudson Valley and the Hamptons than from any other borough. But after a months-long lull in the buying and selling of homes, prices began bouncing back. The median jumped from $999,000 to $1,050,000 between 2019 and 2020, and then up to $1,165,000 at the end of 2021, a two-year gain of 16.6 percent, according to the Miller Samuel data. Of all the co-ops, condos, and townhouses for sale last month in Manhattan, about 290 were listed around that median of $1.17 million, according to a search on StreetEasy.com for apartments between $1 million to $1.2 million. Among them was 400 East 56th Street, No. 23C, a one-bedroom co-op in a postwar doorman building at First Avenue, near Sutton Place.