The past couple of years has included lots of ups and downs. We thought 2020 was rough, but 2021 delivered an ongoing pandemic along with its economic fallout. Dare we look at the year ahead? In this post, Magnolia Home Inspection Services shares what to expect with the real estate market and home inspections in 2022.
The Housing Market
Housing prices soared in 2020 and much of 2021. Buyers made offers site-unseen and over-asking price to out-bid their competitors. Remote work and a growing number of first-time buyers contributed to the demand for new housing. As a result, house prices continued to increase as availability slowed. Long story short, you can expect further house price increases in 2022, according to CNET.
Why You May Not Want to Ride it out
If you’re considering buying a house, you may decide to hang tight until prices stabilize. While that’s certainly an option, you should know that experts predict that won’t happen any time soon. That being said, the rate of increase is projected to slow next year. However, that also means that you’ll only pay more out of pocket the longer you wait.
What about New Construction?
Prospective homebuyers often consider building a new home as an alternative to purchasing an existing home. Sometimes, that’s the better decision depending on various factors, including getting everything done to your specifications. However, supply chain and labor issues both interfere with this goal. You probably saw how getting lumber and other building materials was challenging in 2021. Additionally, the demand for skilled labor outpaced the supply. Add those two factors together, and you increase the time and cost it takes to build new. Moreover, inflation means these challenges aren’t going away any time soon.
Speaking of inflation, experts agree—and the Federal Reserve has acknowledged—that interest rates will rise in 2022. Rising interest rates mean you pay more for a house loan in monthly payments and over time. Alternatively, interest rates remain historically low. Therefore, you may want to take advantage of current interest rates and act now.
Additional Considerations
You may find it shocking that we address climate change in a post about real estate and home inspections in 2022. However, it makes perfect sense. First, we recommend you never waive one, whether it’s a pre-listing inspection or a buyer inspection. As much as you invest in real estate, you want to know what you’re getting for the money.
Next, many areas require certain inspections by law. Depending on the U.S. region, some insurance companies require flood or fire inspections.
Finally, consider that weather and changing landscapes impact housing structures. Insurance companies need to know that the homes they ensure are sound. Depending on the home’s age, it may not be energy efficient or sustainable. Building new, using the latest building material technology, and getting a home inspection could save you money in the long run.
Proudly Serving Texas
The housing market continues to soar, especially in Texas. No matter what type of home you want or when you want it, Magnolia Home Inspection Services is ready when you are. Need a specialty inspection? Please view our services and request a quote. Call (832) 303-8048 to schedule a home inspection in Houston, Cypress, Montgomery, or nearby.
Source: https://www.cnet.com/personal-finance/what-to-expect-from-the-housing-market-in-2022-another-sellers-market/
