Real Estate in Today’s Market
2022 is well underway and with everything that’s going on you need someone to help navigate. Luckily, you have Chrissy the #DentonRealtor to guide you! Real estate in today’s market can sound like an overwhelming subject, but with Chrissy by your side, you can take a deep breath and relax.
In this article you’ll read about 3 different topic points:
Get moving! If you’re wanting a house by next spring or summer and it’s new construction, you need to get on the wait-list immediately! Low inventory is continuing to slow things down.
Interest rates are expected to go up.
Contrary to what you might think, it’s a sellers’ market right now!
So hold onto your hats, Dentonites, and let’s get to it!
Get Moving!
There are some reasons why the demand for new homes is going to remain high. Millennials are now between the ages of 29 and 40. Time really has flown by! Many people in this age range are in a position to buy/build their first home.
From reading other Chrissy the #DentonRealtor articles, you know that people are spending more time at home and are fully embracing it. Many employers are not requiring employees to show up at the office anymore.
Now that houses have turned into more than just homes (offices, schools, band rehearsal spaces), people are looking to get their ideal homes built that meet all of their needs.
The construction of new homes is in high demand this year indeed. So “what’s the problem?” you may be wondering. Expensive building materials, supply chain shortages, and the high cost of labor combined have made it difficult for homebuilders to keep up with this demand.
In Texas, a single-family home can be built in about 180 days. Currently, it might take that long to get some of the materials required for construction. Bricks and lumber aren’t the only materials that are taking a long time to get. Windows can take just as long.
Builders are caught in between people wanting their homes built quickly and supply chain shortages. So, it’s easy to see why they are stressed.
If you are wanting to be in a newly constructed home by next spring or summer, then you need to get moving now. Get on the wait-list now and you’ll be happy that you did.
Interest Rates are Expected to Go Up Again
You may have heard a prediction that the Federal Reserve’s benchmark interest rate will be increased by a full percentage point in 2022. More than likely, you are concerned with what increased interest rates could mean for your personal finances.
Whether you are a real estate investor, a homeowner, or a homebuyer, you are going to see the effects of rising interest rates in 2022.
With rates lower last year, there was a huge spike in how many people were refinancing their homes. Homeowners were really able to save on their monthly payments. When rates increase even the slightest it can make the hassle that comes along with refinancing your house not even worth it.
However, refinancing your home loans this year may help in the long run.
There are a couple of other ways you can prepare for the possible rise in interest rates in 2022. For instance, you could refinance your private student loans. If you have private loans, you don’t qualify for the “pause on payments and interest for federal student loans” set up by the Biden administration.
Before interest rates rise, you can refinance your private loan at a fixed rate. If you were even reconsidering refinancing your private student loans this year, it’s probably a good idea to pull:
“..the trigger sooner rather than later to try and take advantage of the current rates” as president of the Institute of Student Loan Advisors, Betsy Mayotte recently said.
Even though it doesn’t sound fun, now might be a good time to look into consolidating your credit card debt. Depending on how much you are in debt, a rise in interest rates could really affect you.
It’s a Seller’s Market Right Now
While on the subject of higher interest rates, it’s important to look at how that will affect the selling of homes. With the possibility of increases in mortgage rates, if you’re thinking of selling your home it makes sense to start listing your home now.
With all of the supply chain shortages and higher-priced building materials, there weren’t as many houses constructed in 2021 as usual. Since there weren’t as many new houses built the housing inventory is low while home values have seen a boost.
Many in the real-estate industry are predicting this “seller’s market” to extend much past spring of 2022.
Recently, Chrissy the #DentonRealtor has seen people who bought their house 3 to 6 months ago who were able to turn around and sell it and still make money. Pretty incredible, right?!
In fact last year DFW saw a spike in the growth of home prices like it’s never seen before.
As you can see there’s a lot going on when it comes to real estate in today’s market. The pandemic has accelerated trends and has started to change fundamental economic structure. Employers have now seen that they can’t take any type of labor for granted. Broken supply chains have thrown everything off course.
When things started opening back up, many employees chose not to go back into the “office” putting small businesses at risk for shutting down. Many of these employees are young adults who if they couldn't work remotely, would rather find another job.
Typically you find that younger people prefer to live in the city with public transportation and entertainment options. Now you have millennials moving into the suburbs which contributes to 2022 being a seller’s market.
Hopefully, you can relax a little more now that you’ve got the inside scoop from Chrissy the #DentonRealtor!
Looking to Buy or Sell? Contact Chrissy Mallouf Today
Contact the #DentonRealtor today, and make sure to check out my YouTube videos for great tips and advice on buying and selling!
