As we see 2021 coming to a close, it’s time to start thinking ahead to 2022. If you were planning on buying a home this year but decided to wait until the market settled, forecasts are anticipating a return to more normal activity in our future. Lenders are still offering remarkably low interest rates on mortgages which means that as housing prices drop, so does the amount you’ll need to borrow.
What To Consider for Buying a Home in 2022
Prices will start reducing as the market continues to cool down, allowing hopeful buyers a chance to snag their dream home without going over budget. Do keep in mind that interest rates are projected to increase later on in 2022 so the earlier you lock in a mortgage, the lower your rate and monthly payment will be. It’s important to start preparing now in order to take full advantage of dropping prices before rates increase to cover the difference.
Don’t let a rate increase concern you though as it follows the same course created by the current hot market, only this time in favor of buyers instead of sellers. Housing prices will drop as rates increase into late 2022 meaning your monthly payment will likely be similar but with the added opportunity to see home appreciation build more quickly. Be ready though as this new opportunity will attract more competition among homebuyers.
How To Capitalize on Your 2022 Move
With interest rates being so absurdly low, the possibilities to create additional income or minimize expenses has increased substantially. Many homeowners are taking the chance to keep their existing property as a rental option, generating a new revenue stream on top of getting low monthly payments on their new home. Since rent prices have already gone up and continue to do so, owning a rental property has never been so lucrative.
Another modern twist to take into account is the availability of remote working opportunities. When the daily commute is taken out of the question, families and young professionals alike can seek out areas that require less travel in order to get around which means less vehicle expenses and upkeep. Some car owners are even selling their vehicle and swapping solely to biking and public transit to get around their new town or city. The savings from low interest rates and lower cost of living can be funneled into other investment vehicles that accrue interest higher than 3%, making your new home possibly the best investment you could consider in 2022.
Ready to take 2022 by storm? Then reach out to the Potempa Team to get prepared with industry-leading mortgage support and processing, all from a team of experts who are passionate about getting you the best deals available.