Real estate has undoubtedly been on a wild ride this past year. At one point, it was so tough to buy a house that the average days on the market for a seller’s home was just 35 days.
Some buyers have been waiting since the start of the pandemic for the real estate market to cool down. Will 2022 be the year buying a home becomes more manageable, or will it still be a seller’s market?
These are some real estate trends to watch.
Higher Mortgage Rates
In 2022, the average mortgage rate is expected to rise from the rock bottom prices seen over the last year or two.
Last year, the average mortgage rate was as low as 2.65%back in January. In the first week of 2022, the average mortgage rate is right around 3.22%.
This means that for those who did not have a lot of cash to put down for a down payment, you may not see the friendly interest rates that can help you along the way like there were a few years ago.
Cost of Lumber
Part of the problem for a buyer in the housing market is that a minimal number of new homes were being made for a time. One factor that affects this now is the cost of lumber, which has been fluctuating dramatically since the pandemic began.
In May of 2021, the price per thousand feet board was $1,515. To put that in perspective, it went down to $389 for the same amount by August.
However, it increased by 135% since the end of December up to $915.
What does this mean? It means that if the cost of lumber continues trending upward, it might be more expensive to build new houses.
If that happens, some people may choose not to build houses at all, which can lead to the continuing problem of there not being enough houses available on the market for buyers.
More House Value Increases?
Despite the higher mortgage rates, as long as there is not enough supply to meet the demand, the housing market could gradually increase. One sign of this is that the average days on the market for a house in the US have not been over 80 days since January 2020.
In Staten Island, house value went up by 5.9% in 2021and by 31.2% over the last five years. Neither of those is as high as the national average, but it could mean that there is still room for a gradual increase in 2022.
Learn More About Real Estate Trends
These are just some of the real estate trends that you may expect to see in 2022. If you are a buyer, you may have a little more hope than in 2020, but if you are a seller, you should still be able to sell your house with ease.
Are you looking for a realtor on Staten Island?Contact us today with your questions.
Wonica Realtors & Appraisers are Staten Island’s #1 independent full-service real estate firm, serving the needs of the community for over 30 years. Whether you are buying, selling, renting or relocating, our staff of highly trained professionals will provide quality realty services with personal attention to your individual real estate needs.