Residential Market 2022 Updates
We have updated and reviewed all mortgage rates to analyze all shifts that have happened financially over the past 6 months. We have made it to the halfway point of 2022 and have proper updates for you on how the market is doing as of now. From what we have revised, we continue to rise up but at a much more fair and tolerable pace, compared to last year and when covid first hit.
Low inventory and competition has made buying a home for buyers very difficult since the year of 2022 began. Mortgage rates are rapidly increasing and are making it much more complicated for anyone to purchase an affordable home in the first place. Many buyers face the reality that higher mortgage rates means not being able to afford homes in the price range they desire. Many people sit around and wait for more inventory and also wait for prices to suddenly drop, which is not very smart to do.
Mortgage rates will be 5% on average for the 2022 year and will rise up to 5.5% by the end of the year. This is in comparison with the average of 3.3% and an increase that will go up to 3.6%. During this summer, we expect to see the buyer demand keep at a steady pace. However, almost all of the markets are expected to remain in favor of the sellers.
When it comes to looking for a house, it could be a daunting task trying to find the right balance between what your personal needs are in a home, and the personal needs of your family and loved ones. In fact, looking and moving into a home is one of the most stressful events that can occur in somebody’s lifetime. That’s why at Dan Olivas and Associates, we came prepared with some guides, tips, and tricks so that you can find your right home with confidence and certainty.
Residential Market 2022 Updates
We have updated and reviewed all mortgage rates to analyze all shifts that have happened financially over the past 6 months. We have made it to the halfway point of 2022 and have proper updates for you on how the market is doing as of now. From what we have revised, we continue to rise up but at a much more fair and tolerable pace, compared to last year and when covid first hit.
Low inventory and competition has made buying a home for buyers very difficult since the year of 2022 began. Mortgage rates are rapidly increasing and are making it much more complicated for anyone to purchase an affordable home in the first place. Many buyers face the reality that higher mortgage rates means not being able to afford homes in the price range they desire. Many people sit around and wait for more inventory and also wait for prices to suddenly drop, which is not very smart to do.
Mortgage rates will be 5% on average for the 2022 year and will rise up to 5.5% by the end of the year. This is in comparison with the average of 3.3% and an increase that will go up to 3.6%. During this summer, we expect to see the buyer demand keep at a steady pace. However, almost all of the markets are expected to remain in favor of the sellers.
Buyers will suffer more than Homeowners
This is a very tough market for buyers. Homeowners have a bigger advantage because they are seeing the value of their homes flourish. Homes with higher prices mean that homeowners are experiencing an even higher equity gain. Homeowners benefit from this in major ways. Home equity wealth is the reason for why prices for homes grow in the first place. Realtors El Paso
Buying a House in Summer 2022
Purchasing a home at this time is going to be more difficult this time around. Purchasing a home in this current market will mean that it all really is a personal decision. Before diving into buying a home, make sure that you are in a good financial position to afford paying for the home. Best Realtor El Paso
We recommend that you start off with a budget and make sure to stick with it. Today’s market is undeniably tough right now and you will find yourself in a bidding war no matter where you may be located. These bidding wars can end up breaking your budget so make sure to stand your ground while deciding if it is beneficial for you at the end. Best Realtor El Paso
There is very limited inventory, which means that some buyers will end up making more concessions than usual in a balanced market. This can end up with you getting an overpriced home that is not for your best benefits. Be patient and make sure that your decision is based on meeting your needs and the needs of anyone living in the home. Long Term economic stability is more important than anything. Realtors in El Paso may have different options and it is always best to view them all.
Warehouses
Warehousing is almost non-existent which has caused prices to go up. If there is anything available, there is usually a bidding war on it. If you are in the market for a warehouse from around 40,000 to 150,000 sqft, it will be very difficult to attain.
If you happen to be a contractor or builder, and want to get into this market, this is a perfect area that is missing at the moment. It is very tight out in the warehousing business. In order to find something available, you must be very proactive and diligent. Best Realtor El Paso
Commercial and Retail
For those who are looking to own office buildings, just know that at the moment it is one of the slowest in the commercial area, because there is just not much available. This is a major reason for why commercial spaces are going up in price. Retail is also a tough market at the moment. Trying to find something that has a decent capurate is very difficult. Realtors in El Paso
Residential
Make sure to think twice before making the choice to sell your home. Residential inventories are very low. Therefore, prices are either staying the same or rising. Multiple offers do come in but there is a rise in house prices. Interest rates have not risen this fast and much in almost a decade.
Currently, there is not enough product out there since the housing market is a very short market being the reason for why residential prices continue to rise.
Prices
The median home price for Texas homes rose once again up to 4.9%. March records state that the market rose up to the price of $335,000. There is a continuing of sales shifts that are going to higher priced homes contributing to higher median prices. There is also growth in shares of higher priced homes in the Austin Texas area, which has increased the price of median priced homes by 8.9%, pricing at $520,000.
Overall
Interest rates going up will limit some individuals from getting into the market, but that has not been seen yet. Home sellers will very likely need to let go of any expectations such as bidding wars, higher amounts than the asking prices, and buyers willing to waive almost every contingency. This is because there is a high chance of them not receiving the windfall expected.
While it is crucial to stay in a seller’s market, buyers are struggling with not just higher prices but mortgage rates as well. This causes buyers to have to put less money on a home than they would have about a year ago.. Best Realtor El Paso
Contact Us Today
If you are questioning if to buy or sell your property, make sure to take all of this information into account with your local real estate agents. Dan and Patti are real estate professionals and as realtors in El Paso, they will direct you into making the right decision, especially with how the real estate market of el paso tx is currently going. Follow us on Facebook
Best Realtor El Paso
