It’s true that the housing market is at a turning point, but what does that mean for someone who is looking to buy or sell a house? What are the top things to consider in this ever-changing market, and what can we expect for the rest of the year?
Experts have stated that we are still seeing the effects of the pandemic, a time at which mortgage rates were at a record low. However, due to the inflation that followed this drop, mortgage rates grew to be higher than they’ve been in decades. While that may seem to be negative at first, it is actually helping the housing market to normalize; moving back towards a pre-pandemic market. There are more homes for sale, and potential buyers aren’t feeling as much pressure when looking. We are starting to see an increase in inventory rather than buyers overrunning the market, and homes are still rising in price. In the state of Wisconsin, homeowners are seeing a 15.2% annual appreciation rate that will only continue to grow your equity. This equity can then be used to cover some, if not all of your next home’s down payment!
When originally asked about the outlook for this year’s housing market, experts thought that the amount of homes that would be for sale this year would remain low, and that buyers would continue to out-number sellers. However, a mid-year reevaluation of their original projections revealed that experts now believe inventory will increase as much as 15% by the end of 2022. (See graph courtesy of Keeping Current Matters.) This may sound like a major increase of homes flooding the market, but as was mentioned earlier, this simply means that buyers will have a few more options this year than originally thought, and that people thinking of selling their homes will still get great prices.
If you find yourself with questions about the rapidly changing world of real estate and want to know more about home appreciation, the current market, or if home ownership is right for you, visit https://www.shorewest.com/ to get in contact with a Shorewest Realtor.
Tags: Quarterly Newsletter