Embracing Buyers Regret in 2021

Are most buyers seeing they made the right decisions in these competitive times?  If you bought this past year, likely you did not have luxury of time while deciding.  Rushed decisions can easily lead to buyer misgivings. Seeing current prices continue to rise, plus the housing forecasts do indeed help confirm that major choice, if made in 2021.  In Brunswick County, the average sales price has gone up almost 20% since 2020 according to Brunswick Association of Realtors.  Homes here are averaging 30 days on the market, and homes listed below $299,000 were 15 days or less on the market.  This past fall our new listings inventory had dropped between 6% and 10% since prior year.   What are some of the national predictions that 2022 will still be a competitive time to buy and a strong sellers’ market?

• Mortgage Rates. According to the Mortgage Bankers Association (MBA), the average rate on the 30-year fixed loan could experience a gradual increase going into 2022. Cause for concern? Even with a slight rise, rates are still projected to be low.
• Mortgage Availability. The MBA also reports that mortgages for the purpose of buying a home are forecast to rise 9% to a record of $1.73 trillion in 2022. This means a competitive market. Thankfully the banks and mortgage regulators demand that loan to value ratios, debt-to-income ratios, and income documentation need to meet strict guidelines (no risky subprime mortgages any more) before a mortgage is approved.  Less causes for defaults to occur.
• Housing Supply. The underproduction of new builds post 2008 crash is still affecting us. The U.S. had underbuilt its housing needs by at least 5.5 million units over the past 20 years, National Association of REALTORS® studies show.  National homebuilding activity in 2021was slightly above historical norms according to Lawrence Yum, NAR Chief Economist.  But it will take at least a few years still to correct the massive shortage.  He predicts the national median home price to rise another 3% in 2022.  

Bottom Line, there is still buying time left to have your cake and eat it too in 2022!