Skip to main content

4 things real estate experts say you should know about the housing market

Whether you’ve just dipped your toe in the housing market or are fully in the process of buying or selling a home, you know just how much the market has changed since the pandemic. Inventory of homes for sale is at an all-time low, sellers are getting at or over their asking price, in addition to multiple offers. It can be an overwhelming and frustrating position to be in if you’re a buyer, but purchasing a home is still one of the most solid investments you can make.

We talked to real estate agents about what they’re seeing and what they want to see more of in today’s market to help buyers and sellers alike.

House with porch and a for sale sign
Andy Dean / Adobe Stock

Current challenges to buying a home in 2022

In addition to the low inventory, there are other challenges homebuyers are faced with right now.

Recommended Videos

Interest rates

“If you’re a buyer in 2022, there are some obstacles, but I believe overall it’s still a good investment opportunity for the long term,” said Ralph DiBugnara, CEO of Home Qualified, a web series and digital resource for homeowners, buyers, and sellers. “The current higher interest rates will be at these levels most likely for the rest of the year, and the Federal Reserve has also already said that they will raise the borrowing rate multiple times this year.” This means higher rent (up 15% nationally already in 2022), so buying a home continues to be the better investment.

Locking in an interest rate, though, is key. “With inflation setting in, and now at record highs, locking in your housing cost is a very smart long-term financial decision,” DiBugnara explained.

Price

DiBugnara also said to expect to pay more than in past markets. “With a national shortage of homes, prices will continue to rise for the foreseeable future, with even higher rates.”

Charles Weinraub, the CEO of Handsome Homebuyer, agreed. “If you’re a buyer, be prepared to put the gloves on and get aggressive with offers,” he said. “As the largest fix and flip investor on Long Island, of the 19 houses I have listed for sale so far in 2022, not one has sold for less than the asking price and some as much as 20% over the asking price.”

Women viewing a house that's for sale
Image used with permission by copyright holder

It’s a good time to be a seller

If you’re thinking about selling your home and worried you may have missed the chance to get top dollar with rising interest rates, the good news is there’s still plenty of time.

“If you have a plan on where you are moving and have an actual house, condo, or apartment secured, then now is a great time to sell,” DiBugnara added. “Between a shortage of homes for sale, inflation, and backed-up buyer demand, the market for sellers may never be better. Bidding wars have become the norm on homes that are priced competitively, so as a seller, you will for sure get a premium in this market.”

wavebreakmedia/Shutterstock

How do we return to a healthy balanced market?

As demand continues to outweigh supply in record numbers and rising interest rates create even more demand as buyers “try to beat the increase in borrowing costs,” sustained increases “will most likely start to detract from the overall buyer pool,” according to Than Merrill, CEO of FortuneBuilders.

To keep people from opting out of the buying market altogether, Merrill explained that a few things need to happen. “For starters, more inventory needs to become available,” he said. “Homeowners need to be more inclined to sell, and new builds need to arrive sooner rather than later. Increasing available inventory will at least help alleviate competition, and perhaps even bring home values into a more acceptable range for buyers.”

Jumping into the market is not for the faint of heart if you’re a buyer. You have to be prepared to have patience, walk away from homes that are at the top of your budget (because they will likely go over asking price), and perhaps settle for a home that doesn’t have everything you’re looking for but does have the potential to get there with some remodeling projects. If you’ve considered building a home, now may be the perfect time to get in with a builder to discuss price, design, and timeline. While these homes are also going for higher prices than in the past due to lumber/material increases and the general market, it may allow you to get everything you want in a home and skip the bidding wars on existing homes. It may not be your original plan, but in this market, flexibility is everything.

Editors' Recommendations

Julie Scagell
Former Digital Trends Contributor
I am a freelance writer based in Minneapolis, MN. My passions include my dogs, talking about my dogs, and taking pictures of…
The hidden costs of charging an electric vehicle nobody is talking about
Are there unknown costs to charging an EV? We've got the scoop
EV car charging

Are you among the many people considering an electric vehicle (EV) for their next car purchase? Before you take the leap into EV ownership, it's best to familiarize yourself with the cost. This includes not only the prices of electric cars themselves but also EV charging costs, including how much installing an EV adapter will cost you.

You likely won't be disappointed in your new eco-friendly vehicle. A recent J.D. Power study found that the majority of first-time EV owners are reluctant to go back to gasoline-powered cars. In fact, the popularity of electric vehicles is steadily on the rise, and almost 50% of the U.S. population is in support of phasing out gasoline cars completely.

Read more
Should you be using vinegar in your washing machine?
We weigh in on if vinegar is a good fabric softener or if it's a myth
Woman putting dirty clothes in washing machine

There are so many practical uses for white vinegar that go way beyond an ingredient for salad dressing or brining. Vinegar has long been used as a natural cleaning option, beauty product, and overall household miracle worker. You may have heard your grandparents offering advice to use vinegar for nearly any household obstacle. And to this day, many people tout its numerous benefits, uses, and applications. If you want an idea of some of the incredible ways white vinegar can benefit you and your household, we'll list a few below.

Just a few of the many out-of-box uses for white vinegar:

Read more
3 things to know about homemade laundry detergent so you don’t ruin your clothes
Consider these factors before using homemade laundry detergent on your clothes
Close-up of a woman holding a wicker laundry basket with white clothes

A full closet of freshly cleaned clothes is delightful. A bed neatly made with crisp, just-washed sheets is divine. Is there anything quite like freshly clean laundry? You may purchase your go-to laundry detergent from the store every so often, but maybe you're wondering about homemade laundry detergent.

There's a lot of talk out there about the health, environmental, and savings benefits of making DIY laundry soap, but is it really safe and effective? Let's dive into what you need to consider before making your own laundry soap - and what you need to make it the right way.

Read more