Why 2022 is the Time to Buy a Home

The past year has seen some fast-paced action in the market. With the flood of homes and sudden buy-up of lower-priced properties, we would think 2022 would face the same challenges. However, this year we’re seeing the market bounce back to more normal cycles. Here’s why 2022 is the perfect time to buy a home.

More Cost-Effective To Buy

The market is experiencing some advantageous changes. We’ve been seeing continuous drops in purchase prices, making rent prices skyrocket. This means the cost of renting is surpassing the expense of purchasing a home. Another reason now is the time to buy a house is that purchasing can offer some protection against inflation. Rent prices aren’t static and can continue to rise, even years from now. On the other hand, mortgages tend to stay unchanged, unless homeowners have adjustable-rate mortgages. Even then, the value by which mortgage payments can increase is still more cost-effective than renting.

Prices Are Rising Slowly

Overall, many market prices are rising very slowly. There aren’t as many properties on the market as there were in past years, but the speed at which these prices are rising is much slower than it was even in 2021. This means homebuyers have plenty of chances to secure lower prices on a desirable property. This may not last for very long, though, as the market continues to see prices rising within the year.

Supply Is Bouncing Back

There’s been a massive shortage of available real estate, making it challenging for some homebuyers to find suitable properties. However, this supply is slowly bouncing back, as more homeowners sell to either upgrade or downgrade in new locations. Additionally, we expect supply in the housing market to return to a normal seasonal cycle, with more real estate becoming available through spring and summer.

Increase in Building Permits

With a lower inventory on the market, many homebuyers, real estate investors, and companies are looking to build properties from the ground up. This year has seen a slight increase in building permits for both residential and commercial real estate with properties for rent. Because of this uptick in contract construction, the market may see even more of a rise in the availability of residential real estate. We can also expect additional complexes into the year, as many new permits serve contracts for condos, apartments, and townhouses.

Increase in Multifamily Properties

The increase in homes on the market should also see a rise in the number of available multifamily units. As interest rates increase, more families are looking for shared space and multifamily options that can help save on overall purchase costs. For families looking to buy during the spring and summer seasons, this is welcome news as more units come into the market.

With the slight uptick and turnaround in the market, we’re confident that 2022 can fill expectations. For more information and to speak with a real estate mentor in Dallas, get in touch with The Tuttle Group today. We assist with real estate networking and help home buyers move into the home of their dreams.