What to Expect in Real Estate for the Last Quarter of 2022
With mortgage rates recently hovering at nearly 7 percent, home sales cooling, and the uncertainty of a recession looming, what are the experts saying about housing trends in the fourth quarter of 2022?
Now that we are in the fourth quarter of this year, when typically, the housing market slows to the slowest three month stretch of the year, what is going on with the supply and demand?
According to Selma Hepp, chief economist at CoreLogic, “Current mortgage rate increases will likely put another damper on home sales activity, resulting in a greater decline in sales than historically seen at the end of the year fourth quarter.” This means there will be more supply and less demand on the current inventory.
So as the market continues to slow, what is the best advice for home buyers and sellers who absolutely need to purchase or sell in the 4th quarter? For sellers, price your home correctly and possibly make some seller concessions rather than risk your property sitting on the market for a length of time-while prices are softening.
According to Greg McBride, chief financial analyst for Bankrate, “Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”
For homebuyers, if you are in a strong position to purchase, buying a property during the 4th quarter might be your best strategy to take advantage of all the opportunities of a slower market. Then after purchasing, refinancing your mortgage down the road when rates become more affordable might be the best option. And of course, always reach out to a trusted agent to give you the latest update on mortgage rates, inventory, and prices so you can make the best educated decision.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2022 real estate forecast, don't hesitate to reach out - we're happy to help!