Should I buy a home in 2022
Should I buy a home in this crazy 2022 Housing Market?
A lot of potential buyers are asking this question lately as they see the increase in interest rates and the craziness of the US housing market. It sometimes feels like Wisconsin is a little bit behind the rest of the country with lots of things (which can be a good thing), in this video (and some of our recent market update videos) Valerie Cohn-Gehrke shares what is really happening in the Oshkosh, Wisconsin market along with other parts of the Fox River Valley in our video:
I’m sure you’ve heard the terminology that “inventory is low” – what exactly does that mean? We are also hearing horror stories of the astronomical numbers related to offers that are made over list price. I did a video on those actual numbers for the Oshkosh, Appleton and Neenah areas also.
We are definitely seeing the competitive bidding wars, but the data is showing that homes can still sell for under or at asking price and that the stories of overage may be a little exaggerated. (As of today that overage is $10 to $12K) The highest offer price does not always win and a home that involves financing has to appraise at the right price or the buyer won’t be given the financing or will have to make up the gap. We don’t always see these things and we can’t necessarily gather that data from the MLS.
Should you buy in this market? The short answer is that even in the craziness, projections are that buyers and those looking to refinance their home yet, should do so in 2022. We’ve seen leaps in interest rates since January 2022. That steep jump is projected to level off--- it will continue to rise, but not at the incremental rate we’ve seen. There are projections that rates will still rise in to 2023. The cost of waiting for this to change will result in home affordability.
Once the dust settles, market comparables on homes will have risen (just as they have for the last 50 years.) Higher interest rates mean less bang for your buck! We’ve spent the last few weeks sharing tips and tricks for how to compete in our buyers series. All those tips and tricks apply.
The simplistic starting point is: Get with a lender and understand your affordability. Find a REALTOR that meshes with your beliefs and style Have that agent set you up with a search so you can start seeing what your affordability actually means home wise in this market Have that agent show the data on inventory and market comparables for your price range Develop multiple strategy positions and talk through what they mean--- before you start looking so you are ready to respond quickly when you are ready to make offers.
People are being successful in this market and we do anticipate that more homes will come on the market, especially as Spring arrives (finally) here. Prepared buyers will have the highest success rate. As agents, we will continue to monitor what the market is actually doing and share that.
Let us know how we can help you!
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