Are you in the process of buying a house, maybe you’ve been searching, putting in offers over the last couple of months and coming up empty-handed, or maybe you’re, just starting the process of buying a home and want to know what to expect as we head into 2022?
Well, today’s we’re I`m going to dive into expectations of the housing market as a buyer over the next couple of months, what you’re likely to see as we move through the end of the year and what you’re likely to see as a buyer in the first Quarter of 2022.
In today’s post we’re going to dive into what I’m actually seeing right now is a listing agent selling properties. What buyers are doing to be competitive?
To give you an idea of what to expect out there if you’re making offers.
Also I`m going to tell you what I’m seeing as a buyer’s agent, helping buyers put in offers, what we’re doing and and where we’re coming up empty-handed, where we’re falling a little bit short and putting on these offers.
You know, as it’s still competitive out there, but before we dive into it I do want to remind you. All real estate is local, so, depending on your market, things might be a little bit different than what I’m talking about here in Minnesota.
I help buyers buy property. I help sell or sell property. I have boots on the ground and I’m trying to use that experience to help guide you through the process. Let you know what to expect, As we move through the market, to help you make more informed logical decisions and help you accomplish your goal of owning a home.
So do me a favor if you find any value in this content at all hit that thumbs up, share it with a friend and feel free to subscribe. If you want more real estate related content, as of today we’re in the first week of December, which is typically known as our fall winter market, and normally this is the time of year when things are slow, homes don’t sell as quickly. You know typically, the only time people are putting their homes on the market.
This time of year is if they really have to sell the property. Normally, you wouldn’t list your home this time of year, unless you actually needed to move, but right now, with low inventory and high buyer demand a lot of people.
Homeowners are choosing to sell their property now to take advantage of the housing market because they’re unsure of what the future holds and that’s not normal for this time of year. Typically, this would be a slow season, but we’re seeing exactly the opposite.
And it’s because there’s very very little inventory out there demand is still very high. Interest rates are still very competitive, and so those buyers that have been sitting on the sidelines for the last year or maybe those just getting into the market putting in offers, are still looking to take advantage of buying a home.
And so when the right property does present itself we’re seeing multiple offers on those properties right now, where I’m located here in Ramsey , it’s in Anoka County Minnesota, we have, as of today, 98 active homes on the market, that single families, condos and townhomes in a Town of over 200 000 people, we have less than 100 active homes on the market and it’s normal to see inventory levels low this time of year as we move through the holidays right typically, as I mentioned a moment ago, this isn’t a time of year when People want to put their homes on the market.
This isn’t a time of year when people typically want to sell their homes, But right now that low inventory is continuing to drive. Buyer demand a lot of people out. There thought that we would see inventory start to build, which would slow that buyer demand and the market would kind of slow down.
If you will, as we head into the end of the year and while the market has kind of moved sideways a little bit, we are still seeing property sell above the asking price, with multiple offers in just a couple of days. In fact, the last two listings that I’ve sold have sold for nearly a hundred thousand dollars more than the asking price. And now that’s not because i priced the properties low
I actually priced the properties at what i thought they were worth, but the market demand drove those properties up. You know one was listed at 8.95, it sold at 9.95. I had another listed at 9
5 and it sold for a million 80 and that one was all cash with a 14 day Escrow every single one of these had multiple offers. So what should we expect?
As we move through the rest of the year? Well, you’re likely to see it’s still competitive out there right, there’s, not a lot of property to choose from there’s still a lot of buyers sitting on the sidelines, wanting to take advantage of the market, those that are worried about interest rates rising those that are worried About home prices, continuing to rise and being potentially priced out of the market and right now there’s a lot of organizations out there predicting double-digit appreciation.
Over the next year, you’ve got Goldman Sachs saying that there’s going to be a 16 increase in home prices over the next year, you’ve have Fannie Mae predicting a seven eight percent increase year over year.
You’ve got Zillow coming out and saying: there’s going to be a nearly 14 increase in home price appreciation year over year and then on the low side.
You have Corelogic saying that there’s going to be a nearly two percent increase in home prices year over year, so either way a lot of these big organizations out there see home prices continuing to go up and it’s because of a lack of supply and high buyer Demand and a lot of people thought that by the end of this year, we were going to see four percent interest rates, which was going to slow the housing market and, as of today, interest rates are sitting somewhere in the low to mid 3%, which is Quite a bit below what expectations were and that’s continuing to drive buyer demand.
As I mentioned earlier, there’s a lot of people out there that believe that, as the fed starts to to loosen the taper, that interest rates are going to rise and that’s going to Affect affordability, so a lot of people want to get in before those rates rise, but let’s talk about what we’re likely to see over the next couple of months as we move into the spring right as we move through the end of the year. I think the market’s going to continue doing what it’s doing, which means you know as homes come on the market. There’s not a lot of inventory out there. Good homes are going to sell quickly when they’re priced right right.
If you still price well above the market, it’s likely going to sit. I’m seeing that here. In my local market, homes that are priced above, fair market value are sitting, but those that are priced at fair market value or below are drawing a lot of attention and end up selling for more than fair market value. Because people see the value in that number.
Based on other sales out there, so you know pricing it right is key in this market, but as we move through the end of the year, inventory is likely going to tighten up right, we’re a couple of weeks away from the Christmas holidays, and you know people.
Typically, aren’t going to buy a home during that year, so if it’s not sold probably the week prior to Christmas chances, are it’s probably going to be after the first of the year, because that’s when people are going to get back in the swing of things now, Let’s take a minute and talk about the spring market, what typically happens and what we’re likely to see this year.
Typically, our spring market is the hottest market of the year, and it usually starts that first week of February, around super bowl. That’s when the market starts to pick up and it really gains steam through the end of April.
That’s typically the hottest market of the year. Last year The spring market was super hot and i have a lot of people out there. Asking at the moment are we going to see the same spring market that we saw last year? Is it going to be as crazy, because last year people were waving contingencies? They were going way above the asking price.
They were just doing really dumb things in order to get their offers accepted, but it’s because it was super competitive out there and people didn’t want to miss out on that opportunity and at the end of the day it ended up working in their favor, because home Prices continued to appreciate through the rest of the year.
So if you were lucky enough to purchase in the spring, you’ve got a decent amount of equity just gained through the rest of last year, and so this year is probably going to be a little bit slower.
But you’re likely to see a very hot housing market right as more property comes to the market in the spring, it’s likely to be met with buyer demand, because interest rates aren’t likely to really move over the next couple of weeks to months, and so demand is.
Still going to be hot now I don’t think as of January 1st you’re going to see this huge influx in inventory, but i think, as we start to turn the year, people get out of the holiday mood the spirit kind of get back to normal you’re, going To see those people that were waiting to put their homes on the market start to get ready, their homes are going to come to market.
I have clients that have already reached out to me that are going to be putting their homes on the market in the spring, and this isn’t the time of year when we’re typically having these conversations. Typically, you know it’s after the holidays that these sellers would normally call and we would start planning for the spring.
But now I know there’s a lot of sellers out there looking to put their homes on the market, which means there is going to be inventory out there in most markets, you’re going to see a built-in inventory, but I believe it’s going to be met with buyer demand it’s not going to be enough inventory!
That’s going to slow the housing market per se, but it’s likely to be enough to give those buyers that missed out on opportunities a chance to get in those buyers that are just starting. The process are likely going to see homes that meet what they’re looking for, but I do think it’s going to be competitive in a lot of markets out there currently in Anoka county, we’re sitting at about 100 active homes on the market.
Our normal market here you know where buyers sellers are somewhat balanced, not really in favor of either somewhere around 2,000 or so homes, so we’re a long ways away from a balanced market. So, even if inventory doubled, which we haven’t seen numbers like that in in over a year and a half, if inventory, doubled, we’d still be over halfway to where we would need to be in order to have a balanced market.
So it’s still going to be competitive out there, so you’re likely to see home prices still continue to appreciate a little bit. But i don’t think it’s going to be quite as crazy as last spring, because a lot of people have been priced out of the market to some extent right home prices are, you know considerably higher than they were a year ago, especially as we get into spring.
So I think, there’s going to be less buyers in those price points, but I do think you’re going to have to to be aggressive in making offers right. That doesn’t mean you need to go in and wave all your contingencies or do anything crazy like that, if you’ve watched any of my videos in the past, you know I’m against. You know waving home inspections and doing some of this crazy stuff.
I do think you need to be competitive, but I don’t think you need to get crazy in order to make your offer accepted.
It’s not like that everywhere. I network with a lot of top agents all across the country, agents in Austin, Boise Seattle. You know parts of Oregon even on the east coast in New York, Florida all of these different markets and most are seeing similar markets to what I’m seeing very little inventory high buyer demand.
Things are continuing to go crazy in those markets. Just because there’s not a lot of property to choose from so while you might say it’s just your local market, it’s not at the moment, because inventory is a problem for the nation right.
It’s not just Minnesota , that’s a problem. It’s a problem nationwide and as a buyer, you just need to go in and know what to expect this. Isn’t a video to get you worried about the housing market. It’s a video to to give you an idea of what to expect as a buyer, if you’re out there putting in offers right, it’s likely to be similar as to you know a couple of months ago, maybe not as hot as the spring, maybe not as crazy.
Going way above the asking price, but I do think you’re going to have to be competitive in making those offers, as I mentioned you’re likely going to have to offer you know at the asking price, maybe more if the property is priced at fair market value. Now, if you’re somebody just starting the process, what do you need to do?
You need to make sure you’re fully pre-approved. You need to make sure that the lender you’re working with, has checked your credit, Checked your tax returns, Your pay stubs really gone through the documentation to make sure you’re approved and if you’re wondering oh man, I haven’t done that. Where do I start?
Do me a favor there’s a link in the description below I’m happy to refer you to a lender that works. The way I do they can take care of you get you pre-approved and the same for an agent.
If you don’t have a real estate agent, that you trust somebody that you know to help guide you through this process, This isn’t a market where you should work with just anyone. You need to work with a pro and that link below will give you the option to get connected to a Realtor that can guide you through that process as well. So hopefully that gives you a little insight a little idea of what to expect over the next couple of months.
Hopefully it doesn’t get you worried, but rather gives you an idea of what to expect as we move into the spring. Now, if you’re one of those people out there, thinking that there’s a housing market crash coming or that 2022 is going to offer something different.