The housing market is arguably stronger than it’s been in decades. In the early part of the century, prices got this high and higher. However, those prices were inflated by unrealistic lenders restrictions where people were able to borrow two or three times what they should have been able to borrow. The difference this time is that this increase has been steadier, and people are seeming to be able to afford their properties for short and long-term goals.
Stricter lending policies and more experienced buyers have created the perfect environment for sellers as they are able to find qualified and serious buyers within hours of listing their property. Homes are being sold in record time and most sellers are more than happy with the offers they are getting. The key is going to be if the inventory will keep up with the demand and in this case, there may be some good news.
Increase In Inventory
One advantage the market has in 2022 is that inventory is expected to go up. The last two years have seen dwindling numbers as the pandemic and other factors have played a big role in minimizing new properties going on the market. Because of the increase in property values, homeowners are expected to be more aggressive with selling, especially if they can get a nice pay day from it.
An important factor that is impacting the market is the fact that there are more lenders than ever before and access to them is easier than ever. Before, people had to go to the bank and apply for qualification to purchase a house. While that process is still the same, now people can do it over the phone or online. This gives them the opportunity to pick and choose different lenders based on costs and conditions. The more lenders means the more competition for buyers which is a big advantage.
The internet has not only made things easier between buyers and lenders but also with realtors, sellers and everyone else involved. Because of that, a new market has opened up where out of town buyers can be just as serious as local ones. For example, people living in the northeast are finding lucrative jobs in Florida. They are able to find a job and house hunt through the internet and have everything set up for them by the time they move down. It’s a huge advantage and one thousands of people are taking advantage of each day.
Companies Stepping In
While it may not seem related to real estate, the labor shortage is having an impact. Companies are desperate for qualified workers, and they are scouring the web for anyone who is willing to move to their town and get to work. They are offering huge bonuses to help with moving costs, and this is driving up the demand for homes and rental properties.
While there are always concerns about the market, the key thing to remember is that the stricter requirements for borrowers or buyers means that people can afford the homes they are buying. That’s the main difference between what happened years ago and what’s happening now. This is why the housing market is expected to remain strong throughout the year.