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Buying or Selling a Home in the Second Half of 2022

You’ve been holding off buying or selling a home, waiting to see if prices will go up or down. But now you’re watching interest rates go up. Predicting what will happen in the real estate market during the second half of 2022 is not an exact science, but according to some experts, here’s what you can expect.


Home Prices Will Continue to Go Up

There are still fewer homes for sale than there are buyers in the market, but experts agree future price increases will be moderate and  won’t fall.1

  • For buyers, increasing home prices mean it will cost you more to buy the longer you wait. You can be sure you’re making a good investment if you buy now, because your home will likely continue to grow in value.
  • For sellers, rising prices are great news when it comes to what you can get for your home. Your real estate agent and lender can help you decide if now is the best time to both sell you home and/or buy your next one.


Housing Inventory Will Be Low, but It Is Growing

The number of houses on the market in the second half of 2022 will continue to be low, but there are signs that the number of homes for sale is starting to grow. 2

  • For buyers, having more options is welcome news, but because supply is still low and prices are still rising, you may have to lower your expectations on your dream home. You’ll need to act fast and make your best offerup front.
  • For sellers, you’ll be one of the few sellers in your market, making this a great time to sell. Your house may face more competition from other sellers, but the good news is, if you’re also buying your next home, more options to choose from should make your buying process easier.


Inflation Will Continue to Drive Up Mortgage Rates, but Less Dramatically

Continuing inflation is likely to push mortgage rates slowly higher in the coming months.3

  • For buyers, work with real estate professionals, including your lender in order to learn how rising mortgage rate environments could impact your purchasing power. It might be advisable to act now before it costs more to buy.
  • For sellers, rising mortgage ratesare motivating some homeowners to make a move up sooner rather than later. If you’re planning to buy your next home, talk to a real estate and lending advisor to decide how to time your move.


The Effects of the Pandemic on the Market Are Lessening

Home sales have almost returned to the level they were in 2019, before the pandemic. Single-family and condominium sales are nearly equal, indicating were back to another pre-pandemic trend.4


The Bottom Line

Whether you’re a homebuyer or seller, you need to keep up with what’s happening in the housing market, so you can make the most informed decision possible. However, what really matters when you’re buying or selling a house are your personal finances and the needs created by the circumstances of your life.


No matter what’s happening in the market, you’re in a much better position to buy a new home and sell your existing one if you meet these qualifications:

  • You’re close to debt-free.
  • You have an emergency fund to cover 3–6 months of expenses.
  • Your new monthly house payment will be 25 percent or less of your monthly take-home pay.
  • You have a down payment. Twenty percent is ideal because you’ll avoid paying private mortgage insurance (PMI). But if you’re a first-time home buyer, 5–10 percent will also work.
  • You can pay the closing costs up front.

Call a Citywide lending professional to discuss your goals and how you can plan ahead. Get help so you can make a smart choice on your best time to buy and/or sell.



1 Lawrence Yun, Chief Economist at the  NAR, explains: “Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022. . . Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.” 


2According to Danielle Hale, Chief Economist at realtor.com: “The gap between this year’s homes for sale and last year’s is one-fifth the size that it was at the beginning of the year. The catch up is likely to continue, . . . This growth will mean more options for shoppers than they’ve had in a while, even though inventory continues to lag pre-pandemic normal.”


3Odeta Kushi, Deputy Chief Economist at First Americansays: … ongoing inflationary pressure remains likely to push mortgage rates even higher in the months to come.” 


4“Home sales have essentially returned to the levels seen in 2019 – prior to the pandemic – after two years of gangbuster performance,” said NAR Chief Economist Lawrence Yun. “Also, the market movements of single-family and condominium sales are nearly equal, possibly implying that the preference towards suburban living over city life that had been present over the past two years is fading with a return to pre-pandemic conditions.”



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