Why Spring 2022 Will Be a Great Time to Put Your Home on the Market
Before putting your home on the market, find out what real estate and mortgage experts predict will happen in Spring 2022.
Spring is the traditional time to list a house, but the pandemic and resulting home-value surge have made the market anything but predictable.
Home sales values in the U.S. rose substantially in 2021. According to the Federal National Mortgage Association (FNMA), more commonly known as Fannie Mae, the trend is expected to continue into 2022, but at a slower pace.
So where does that leave homeowners looking to sell their houses? Will Spring 2022 still be the best time of year to list a home, or could other economic factors come into play? We checked with experts in the real estate and mortgage-lending industries to better understand what the new year might bring for home sellers.
Higher Interest Rates Could Have an Impact
Mortgage rates have been low for years, but they recently saw a slight increase. While there’s no indication of runaway rates in 2022, even minor increases can put a damper on home sales.
Mike Gregor, a Connecticut Realtor with Cohen Agency SiM, LLC, speculates that the housing market may cool down a bit in 2022, but he doesn’t think it will change drastically. However, Gregor told us that “there is a possibility the mortgage rate will increase soon.” As such, he feels it might be better for sellers to “list their homes now rather than holding off.”
Does Listing Early Make Sense?
Glen Pizzolorusso, Associate Real Estate Broker with Compass in Fairfield County, Connecticut, thinks there’s good reason for sellers to list their houses during the second week of January 2022.
Why? Pizzolorusso anticipates a spike in buyers right after the new year. Though he expects home value growth to level off slightly in 2022, he doesn’t foresee a crash: “I don’t anticipate a burst, but some markets will see slight corrections,” says Pizzolorusso. “If you are thinking of selling, I wouldn’t wait.”
Low Inventory Portends a Seller’s Market
Due to ongoing pandemic-related supply chain interruptions and a dearth of construction materials, fewer new houses were constructed in 2021. The decrease in the number of new homes contributed to reduced housing inventory and a boost in home values.
Andrew Bennet, Real Estate Broker with Haystack Realty Group in Greenville, North Carolina, expects that trend to continue next year. “This is certainly a seller’s market right now and will continue through all of 2022, not just the spring,” Bennet said. This is good news for sellers who might have to wait until later in the year to list their homes.
Lender Predicts Strong 2022 Real Estate Market
Homeowners may be concerned about the effect of rising inflation on the real estate market in the coming year, but Heather McRae, Senior Loan Officer with Chicago Financial Services, doesn’t foresee a problem for sellers.
“Real estate is an asset class,” McRae said, “and, in inflationary environments, asset prices tend to rise.” While she thinks the pace of sales may be slower in 2022 than it was in 2021, she also expects home sales to remain robust all year.
Seasonal Selling Strategies
When the weather cools in fall, real estate sales typically cool off a bit, too, but that’s not happening as noticeably in 2021 as in has years past , thanks to low housing inventory and increased buyer competition.
Some real estate experts and mortgage lenders think the real estate market will continue to be strong throughout 2022, which means sellers may not have to rush to list their homes before the traditional May 1 deadline. If home values continue to climb, waiting to list until summer or fall of 2022 may result in more profit from the sale.
Demographics and Regional Details
No matter how good or poor the national housing outlook is, homeowners need to be aware of what’s happening in their communities when looking to sell a house.
House values vary by region—a 1,500-square-foot rancher may sell for $350,000 in a city that’s booming but may bring only $175,000 if it’s in an area with a depressed economy.
While spring 2022 is still looking like a good time to list your home, be sure to talk with local real estate agents to ensure it’s the right timing for listing in your community.