The real estate industry is not slowing down anytime soon. Even if there was a short lull in both prices and sales, house sales are still booming. At the end of January 2022, the demand for houses is still at an all-time high. Data shows that home prices in America are higher by 11.8% than last year. But that is not stopping people from bidding each other out for the homes they want. Also, even if the mortgage prices are higher, people don't seem to mind.
Of course, prices are also hiking up since the supply is deficient. That is still a big issue in the country. But there is a light at the end of the tunnel because house supply is seen to increase more this year than it was last year.
What does this mean for homebuyers and realtors alike?
Due to the high demand and low supply, homebuyers should act fast when deciding on a home. Homes stay on the list for fewer days than normal. And they were selling higher than usual too. Homes nowadays sell faster than they did pre-pandemic.
Realtors will also have a challenging time. This means that they have to look for the best homes that will also fit their clients' needs and budgets. Realtors will also be challenged to act fast and get those homes and close bids.
What are the average home prices in 2022?
In 2021, the average home sale price was $269,039. That was already a 9.1% increase from 2020. This year, they are expecting to see a 2.9% increase in the first quarter alone.
A lot of aspiring home buyers delay their purchase due to the prices, but they didn't see that prices start to increase even during the pandemic. That is because people are keener on buying without thinking anymore to get the houses they want.
The states that have the highest home prices right now are California, Massachusetts, Washington, and New York, to name a few.
California's average is about $505,000, and New York has $313,000. These prices are predicted to go higher as the months go by. That is why there has also been a challenge in finding the right home at the right price.
Now it will be hard to get all the needs in one property. Some of the things that people usually look for are good school districts, booming job opportunities, and, of course, safety. But again, if you bid right alongside a realtor with a good list of open houses, this can also be possible.
Final Thoughts
The housing industry is not slowing down anytime soon. The prices will go up, and the demand will just keep rising. The supply has to be met for this to neutralize.
Average home prices range from $300,000 to $500,000. Homebuyers and realtors alike should be able to close bids fast and accept the high mortgage rates.
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