Today’s low rates have encouraged consumers to enter the housing market in droves while limited inventory has enabled homeowners to sell for top dollar. The question is… will the market cool down any time soon?
Here are a few interesting statistics to consider as we look back on 2021 and look toward 2022.
First, home sales are on track to reach the highest level in 15 years, with an estimated 6 million homes sold in 2021.
Second, homeowners saw average home prices skyrocket nearly 20% through the third quarter of 2021 compared to 2020.
Third, Freddie Mac estimates that the nation is 4 million homes short of current buyer demand. This means that despite higher mortgage rates, today’s seller’s market may not go anywhere any time soon.
On top of that, the Federal Reserve recently signaled that they may raise their benchmark short-term rate, which has a direct effect on increasing mortgage rates.
What does this mean for you? Well, if you’ve been thinking about purchasing, you may want to consider doing so before the cost of obtaining a mortgage loan drastically increases. And if you’ve been thinking about selling, now may be the time since property values may be affected due to the anticipated increase in mortgage rates. If you’d like to learn more about purchasing or selling a home in this market, let’s connect!
John D. Reyes
Mortgage Loan Originator, REALTOR®, Marketing Strategist
Direct: 909.917.5567
DRE #01719218 – Higher Realty
NMLS #2241612 – EZ Fundings Home Loans