In 2020, there was an estimated 5 million homes for sale. It was also projected that by 2022, that number would increase to 8.4 million. Prices are expected to rise by 2.9%. That’s a huge jump in the real estate market!
So, what is the real estate market really going to look like in 2022? Well, we have a prediction for you in the content below. Just keep reading!
Why Is the Real Estate Market Growing?
The real estate market is growing at a fast pace compared to several other sectors in the economy. Do not expect the real estate market to slow down anytime soon. In fact, you should expect the last three years of growth to continue for the next five years after 2022.
The real estate market is growing at a rate that is higher than other areas of the economy. But why is that? Well, there are various factors behind this growth, like a lack of adequate housing for an increasingly large population.
Also, the low interest rates that have made home loans more affordable play a role too.
What to Consider Before Buying Real Estate in 2022?
Before you dive into the housing market, ask yourself a few questions. What kind of property should you buy? Is there anything special to consider when buying for 2022? How does it affect your costs?
Type of Property
Buying any type of property involves one major cost: the purchase price. Other fees depend on your choice of property and location. For example, if you choose an apartment in the city, it’s likely that you may pay 15% less than if you bought elsewhere.
That’s because there is simply more space available in the suburbs, and therefore less competition. But that percentage and scenario are greatly influenced by the region you live in and the real estate market.
Another thing to consider when buying property is where you’re going to live after you buy. Will it allow you to easily commute? Are there local amenities like shops, schools, and healthcare facilities?
What about crime levels in the area? Is this somewhere you envision yourself living long term?
So what does this mean for you? It means that buying a 2,000 sq ft house in the suburbs might not be the best idea if you’re only going to live there for 5 years before moving closer to your new job.
You should also keep in mind that with any real estate purchase, there will be regular costs. Annual property taxes, monthly utilities, and maintenance costs are all things to consider when buying a new property.
But don’t despair! The good news is that the real estate market has been slowly recovering since 2012. With economic competency expected to continue in 2022, homeowners can expect more appreciation on their investments as the decade progresses.
Buying a House vs. Renting an Apartment
When a person is faced with the decision to rent or buy a house, they may ask themselves one of three questions. Should I rent? Should I buy? What’s the difference between renting and buying, anyway?
The answer to these questions depends on more than just what you can afford. It also depends on how long you plan to stay in an area, whether the area is where you would like to settle down in the future, and what your plans are.
Renting has its benefits compared to buying a house. Primarily, the fact that you do not have to pay for repairs, yard work, or maintenance associated with having a house.
If you rent an apartment, you only need to worry about your monthly payment. What’s more, renters do not have to pay the up-front fees that go along with buying a house, such as closing costs and down payments.
However, there are also benefits to owning a house. This is illustrated by one simple fact: Ownership comes with price appreciation. That means that the longer you live in your home, the more valuable it becomes.
If you invest wisely, your house should grow in value faster than inflation, and this can often be a much safer way to build wealth.
It is important to take factors other than the financial implications of your decision into consideration when deciding between buying a house or renting an apartment.
When choosing between owning a home or renting an apartment, the first thing one should determine is where they would like to spend the next few years of their lives.
If you plan on making a certain city your permanent residence for at least five years, then buying might be a better option than renting.
Furthermore, when deciding between buying or renting an apartment, it is essential to remember that future plans are fluid. They may change at any time.
Renters can move elsewhere with very little stress, but it is much more difficult for homeowners to relocate.
Are you looking for a house in Chicago? If so, view here to learn more about real estate and the real estate market in that area.
Understanding Real Estate Market Trends
The real estate market is a bit tricky. There are always fluctuations within the housing market, which makes it somewhat difficult to forecast.
But whether you want to sell your home or buy a home, it’s wise to do so in 2022. After a difficult couple of years, we can anticipate a better future for the real estate market moving forward. It’s a win-win for everyone!
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