2021 proved to be a great year for sellers and a tough one for those looking to buy. Sellers were able to price high and still receive above-asking offers, multiple offers, and all-cash offers to require no financing. With many people working from home and interest rates being low, you’d think that would make this a very desirable time to buy a home, especially if you’re a first-time homebuyer. Un-fortunately with the price hikes, limited inventory, and fierce bidding, this didn’t prove to be the case. The 2021 housing market saw a remarkable level of growth with home sales up a record 19.8%. According to Fannie Mae, median home prices are predicted to rise 7.9% more between the fourth quarter of 2021 and the fourth quarter of 2022. This will reflect a slowing of the current year’s growth, however, it still exceeds the norm for growth seen in years prior. With that esti-mation, it sounds like the housing market is expected to start returning to a “normalish” level of price appreciation within the upcoming year. In addition to the rise in prices, it is expected that mortgage rates will also climb to rates in the 3.1-3.4% range. The mortgage rates are not expected to pull down the prices of homes, howev-er, the shortage of homes available for sale will continue to drive a sustained strong apprecia-tion in home values. With all that being said, although it seems as though 2022 will remain a hot market, it will gradually begin to reflect a little friendlier environment for buyers.
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Proud Members:
Equal Housing Lender
Venice Area Chamber of Commerce
Venice Area Board of Realtors
BNI Member
Englewood Area Board of Realtors
Mortgage Bankers Association
USDA
Federal Housing Commisioner
Department of Veterans Affairs
Realtors of Punta Gorda Port Charlotte North Port Desoto
2021 proved to be a great year for sellers and a tough one for those looking to buy. Sellers were able to price high and still receive above-asking offers, multiple offers, and all-cash offers to require no financing. With many people working from home and interest rates being low, you’d think that would make this a very desirable time to buy a home, especially if you’re a first-time homebuyer. Un-fortunately with the price hikes, limited inventory, and fierce bidding, this didn’t prove to be the case. The 2021 housing market saw a remarkable level of growth with home sales up a record 19.8%. According to Fannie Mae, median home prices are predicted to rise 7.9% more between the fourth quarter of 2021 and the fourth quarter of 2022. This will reflect a slowing of the current year’s growth, however, it still exceeds the norm for growth seen in years prior. With that esti-mation, it sounds like the housing market is expected to start returning to a “normalish” level of price appreciation within the upcoming year. In addition to the rise in prices, it is expected that mortgage rates will also climb to rates in the 3.1-3.4% range. The mortgage rates are not expected to pull down the prices of homes, howev-er, the shortage of homes available for sale will continue to drive a sustained strong apprecia-tion in home values. With all that being said, although it seems as though 2022 will remain a hot market, it will gradually begin to reflect a little friendlier environment for buyers.
