The New Year is here! As people across the globe begin their resolutions, many people are hoping that the year 2022 is the year they’ll be able to buy their first home. Whether you’ve been saving up for a down payment relentlessly over the past few years, or you’re hoping to secure a loan with a low down payment amount, the year 2022 could see a huge rise in first-time homebuyers.
Why?
A lot of first-time buyers have been anxiously waiting for the real estate market to crash. While the market has remained healthy and seems to continue to flourish, many homeowner hopefuls were anticipating a crash much like the 2008-2012 housing market. During this anticipated crash, many first-time buyers were hopeful to purchase a home far below the current market value to have minimal mortgage amounts and a thus, live a life of financial freedom while still maintaining a home and becoming homeowners.
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What Changed?
So, what exactly changed? The short answer, the market. It’s been quite a while since COVID first shut down the country, and while in the beginning many experts felt as if the market would crash, the opposite has proven to be true, and the real estate market has flourished with house prices continuing to rise. With home prices seeing near continuous increases, those that were initially waiting to pounce on the market’s potential crash are now re-considering their options. Many first-time buyers are now shifting their gears and hopeful to purchase their first home in 2022 before the market continues to rise, as the current trend isn’t showing proof of slowing or crashing anytime soon.
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Another reason that many people are choosing to purchase a home in the New Year is simply due to the drastically low interest rates. While home prices may be more than many homeowner hopefuls had expected, due to the low interest rates, while the purchase price may be high, the amount saved over the life of the loan could end up allowing homeowners to spend less in the long run than if they’d waited for a crash and thus purchased a home that may have had a higher interest rate.
If you’re currently searching for a new home, are ready to sell your home and need a qualified seller’s agent to assist you, or if you have any further questions regarding Carolina Real Estate, please feel free to contact our office at any time.