Happy New Year from the team at Quinn & Wilson, REALTORS!
But is it going to be a “normal” homebuying year or a “crazy” homebuying year?
If you are one of the millions of Americans looking for 2022 to be the year you buy a new home this is the question you probably asked yourself pretty frequently over the last few days. If you were already in the market in 2021 then you know demand for houses was way greater than the number of homes available – both nationally and here in the suburban Philadelphia area. According to BrightMLS, the data service for real estate agents throughout the Delaware Valley, the number of homes for sale is still only 25% of what economists would call “balanced”. But other outside forces like inflation, Federal Reserve proposed interest rate hikes, and an end to COVID forcloseure-moratoria could change the look for 2022.
For the agents of Quinn & Wilson, we see opportunities in every market. In 2021 we helped more Montgomery, Bucks, and Philadelphia home owners find buyers than at any point in our history. We also helped more buyers get into new homes than ever before. We use data as our guide…we know where the opportunities exist…and we’re setting the stage for even more during 2022.
If you are in the market, we encourage you to look at this report from Realtor.com’s economics team. As the graphic above from the report also shows, suburbs are the place to be. Work-from-home job changes and the desires of the “millennial generation” to settle down are pushing demand away from city-centers and into the nearby ‘burbs. We saw that throughout 2021, placing former downtown Philadelphia residents in Doylestown, in King of Prussia, in Hatboro and throughout the area. The report also shows that renting is getting more expensive – rents outpaced home prices by more than 7 percent.
If you are a home seller 2022 still offers you tremendous opportunity. While mortgage rates are expected to climb along with the Federal Reserve’s interest rate moves the prediction for end-of-year rates is still under 4% – which will have little impact on the demand for homes. Even with new home construction up by 11% in 2021 (source: National Association of Home Builders) there will not be anywhere near enough housing in place to meet the demand. Quinn & Wilson still encourages home sellers to get a report detailing how much their home is now worth based on new market conditions.
Here’s to 2022 – opportunities for everyone!
Photo: Realtor.com – click here to see on their site.