Don’t wait to buy! Buy now, by Kamesha Keesee.

Don’t Wait To Buy! Buy Now

By Kamesha Keesee

The 2022 real estate market is looking more like a normal market!

As we get closer to the spring season, the market is shaping up to be what we hoped for for the last two years, but that doesn’t mean that buyers will have it easy! There is still an uphill battle but it shouldn’t feel anything like 2020 or 2021.

Last year, we witnessed the home values skyrocket by nearly 20% according to data from the S&P Case-Shiller national index of home prices and while we do not expect the home prices to drop anytime soon (at least not this year), the increasing rate is expected to slow down. Most experts agree that home values this year might be increasing at roughly half the rate we saw during the peak of 2021.

Buyers will still face crazy bidding wars. But they aren’t as intense as it was last year. This means sellers may not be having the upper hand for long, they may not be as selective when choosing between offers. For instance, in 2021, a trend I noticed in most parts of the Corona Housing Market was that all-cash offers and conventional loan offer where appraisal contingencies were waived were often needed to win bids.

The market right now presents the perfect opportunities to buy as prices are reducing quite dramatically. If you are planning to buy during this year’s homebuying season in Corona, this is the time!

RISING MORTGAGE RATES

If you are keen and really interested in buying this year, you must have noted that the rates are 1.5 times higher than they were around this time last year. There are so many factors that are pushing the interest rates higher and in addition, there is the issue of rising inflation.

What all this information means is that spring 2022 will be characterized by higher rates which can chip away at your buying power. You cannot wait any longer, waiting will compromise your

affordability chances. The mistake that I see many people doing in Corona is that they try to time the rate and when that doesn’t go their way, it’s too late!

From a historical perspective, the 4%+ rate is still favorable which means, rather than waiting to get into the market sometime in the future, you need to get in right now!

CORONA MARKET OUTLOOK

The Corona housing market will still be dominated by sellers going into the 2022 spring market. But it will be less competitive for buyers than the previous spring.

We’ll still experience high demand levels but that does not in any way compare to the 2021’s spring season where supply was wildly out of balance with demand levels. Remember, the spring season is typically the busiest season in terms of real estate activities but what I foresee is a typical pre-pandemic season this year. One of the positive trends I see is that sellers are increasingly letting go of their homes. Inventory levels are increasing slowly but it will not be enough to quench the market.

Since we expect that the rates will be rising, it is important that as a buyer you understand your finances. I see a lot of buyers making the mistake of getting too emotionally attached to a property that they are willing to overlook their upper buying limit, and this year that is a mistake you do not want to make. It will cost you a lot, especially after the fact that the mortgage rates are rising. If you going to get a loan, be careful not to take a loan amount that is more than you are comfortable with.

Since sellers do not have the upper hand as they did before (they do, but not as much), as a seller, you may want to get ahead of the maintenance and upgrades before putting the property on the market. Remember, buyers, are now seeing more properties than they were last year.