The real estate market is now red hot due to the economic impact of coronavirus. An increase in prices was the norm in the past year or so, as demand for houses increased. Still, pundits in the sector are predicting a similar trajectory as we have seen in the past year. The following section will look at how the industry will likely be in 2022. The information can help you plan for your home purchase. Let us get right into it.
What to Expect in 2022
The number of houses for sale will likely remain low this year. The supply chain and lack of human labour challenges are the main contributors. Even though developers will create more units, the supply will remain low. It would be best to consider other available options in 2022. You can view house and land packages available in Tarneit, Victoria, to buy. The choice is affordable as you pay low stamp duty fees. Still, you can personalize the property to suit your personality and lifestyle.
Reports show that property listings are low, and it will be challenging to satisfy the demand. The market will likely not attain its equilibrium in 2022. So you might end up buying a house at a higher amount than its asking price due to the demand.
Interest Rates will Increase
Expect a rise in interest for mortgages compared to the average rates. The situation will discourage investors who like to speculate on a property and buy for future gains. As the potential buyers reduce, it will be an advantage for a person buying a house on loan. They will get affordable homes as there will be minimal inflation.
Prices will Increase
Entities selling houses will have an advantage in 2022 due to the low supply of homes and high-interest rates. It may necessitate potential buyers to bid for a house, increasing its selling price. The previous two factors highlighted in this reading will play a significant role in rising property prices. It is advisable to seek property to buy before their listing. You will not need to battle anyone for the house as they are not available in the public domain.
Tough Time for First-time Homebuyers
If you want to buy your first property this year, you should expect a tough time. It may necessitate you to seek help to make the initial payment for a house. Therefore, it won’t be easy to purchase if you do not have enough deposit. In turn, it will reduce the number of people who can buy their first house in 2022.
The Final Thoughts
Although the market looks competitive, you can get the right house to buy if you do your homework. It is advisable to speed up the process of purchasing a property. Still, keep an eye on the new property listing to pounce on a fair deal when it arises. But, ensure you get a fair value and undertake comprehensive home inspections to negotiate the asking price.