How the 2022 spring market is shaping up
The spring real estate home buying market is underway, and homebuyers are still facing an uphill battle in this highly competitive seller’s market.
When the pandemic hit in 2020, many real estate groups predicted that there would be a slump in the housing market. Instead, the market turned out to be hotter than ever and homebuyers wanted to take advantage of the record-breaking low rates. With the large amounts of millennials now being a part of the home buying pool and looking to move into their first home – inventory started to dwindle and has continued to do so since.
Terry McDonald of The McDonald Group at EXP Realty stated, “The real estate market is defined by the lack of inventory. A lack of available homes to purchase has produced many more buyers than sellers, pushing prices higher.”
Additionally, one of McLean Mortgage Corporation’s mortgage experts, Senior Loan Officer, Nancy Rosenfeld in our North Carolina Branch said, “The spring marking of 2022 is more competitive than ever. Inventory is at the lowest it has ever been, and rates have started to rise, so that puts buyers in a frenzy to try to beat the competition on each house they find that suits their needs.”
A new way of buying
With the physical and economic restraints of COVID – current home buyers, particularly millennials – who make up one of the large segments of homebuyers, have had to approach the home buying process in many different ways compared to previous generations. Primarily, relying on digital processes and having a laser focus on their savings. Virtual walk-throughs and online approvals have been on the rise and the move towards more technology are expected to continue as the industry evolves with the times.
“I do feel like last spring we were still dealing with COVID issues and today we’re in a better spot – in terms of people being able to get inside resales. The pandemic did help allow successful virtual showings and sales but that comes with its challenges as well,” stated Suzanne Iovino from Absolute Real Estate Services, LLC.
Despite enduring the stock market crash back in 2008 which has caused ripple effects on affordability, high student loan debts, and the recent effects of COVID starting in 2020- young professionals are still finding ways to become homeowners. They are becoming savvier and conservative in determining when to buy homes and planning mortgage repayments. Check out what they are doing as fewer millennials are Seeking Mortgage Help from Parents. Furthermore, according to a study done by the National Association of Realtors, a whopping 71% of buyers between the ages of 31 to 40 years old and 84% of buyers 30 years or younger, rely on their savings to pay for their down payments.
The struggle to win offers
With the uptick in rate increases since last fall – jumping from 2% averages to 4% averages – and the lack of inventory, the housing market is tighter than ever. During the current market, you should expect a high amount of competition. At McLean Mortgage Corporation, we have seen homes sell before they even hit the market and our borrowers are often viewing 20+ homes and placing anywhere from 3 – 6 or more offers in the Northern Virginia area alone.
Rosenfeld continued by explaining “I have found that many of my buyers have been through at least 3-4 attempts to secure a contract before finally achieving an accepted offer. As a Sr. Mortgage Advisor in this market, my clients and realtor partners expect me to respond to preapproval requests right away and on the fly (days, nights, and weekends), because time is beyond critical on every offer that is being made due to the competition and rise in interest rates.”
So, how can homebuyers rise above the competition and step into their dream homes?
The mortgage industry is full of professionals doing their best to make the process smooth and stress-free for their borrowers during this trying homebuying season. At McLean Mortgage, we make sure to keep up with the latest technology and provide quick responses to help you navigate the process as smoothly and quickly as possible.
The best thing you can do to prepare for your home buying journey is to talk with a mortgage expert even before you start your home buying search. Meeting with a mortgage expert to discuss your qualifications can help you learn about programs that fit your needs and help you determine the right loan amount. If you are in need of a Realtor® we partner with top industry professionals in the communities we serve to help you get the best deals in your local areas.
If you’re ready to take the first steps to buying a home, get in touch with a Mortgage Expert Today!
- Get preapproved – Show sellers that you are completely serious about your offer.
- Ask about lock programs – Locking your mortgage rate before they continue to rise can help ease the stress of the loan process and help you enjoy finding the right home even more.
- Learn more about the home buying process so that you know what to expect. Doing so will help you get all of your information in line for a smoother process.
- Get an appraisal and find out what your current home is worth. If you’re looking to sell, find out what your home is worth so that you can get the best deal on it.
We’re here for you when you are ready to step into your dream home.