2022 has proven to be a pivotal year for the housing and real estate market. With the ongoing Ukraine war on one side, and the rising interest rates on the other, the housing market is seeing a shift from the post-Covid boost. There is one good thing that has come out of this though: More options for homebuyers! According to reports, there is an 8% increase in the number of active listings this May, when compared to the numbers this time last year.
Experts are predicting mortgage rates to go as up as 5.5% by the end of this year. If met, it would push home rates through the roof, making it a burden for buyers. Sellers, however, are enjoying these record high prices, as their profit rates have not been this high since the past decade. The Chief Economist of the real estate website ‘Realtor’ shared her views on the market conditions stating that, “The number of homes for sale right now is so low that it’s creating these ultracompetitive conditions for buyers, which are so challenging. More homes for sale will help bring back more balance and sanity to the market.”
This predicted increase in interest rates is what will be changing the real estate market for the year 2022. This however isn’t a bad thing. Real estate, despite these high prices, has have a very good year thus far. More active properties also mean more options for buyers, who prior to this, couldn’t find the property of their liking due to the shortage of real estate (or rather the shortage of active listings.) What do these rising interest rates mean for investors? It most definitely is going to change their course of action. Lenders and borrowers are going to be more cautious with investments. When talking about real estate specifically, experts suggest that “Cash-flowing multifamily and industrial assets won’t be as severely impacted.” This was quoted from Richard Ortiz, co-founder and managing principal at Hudson Realty Capital. Just because lenders are going to be more conservative, doesn’t mean that investors need to hold off from investing now. The right kind of deal is what makes a world of a difference. The more stabilized the type of property, the easier the deal going through.
Until when can you expect these high prices? Well, it’s a complicated matter! A simple, overall answer to that is – supply and demand need to match. Prices will remain high unless there are more homes in the market than people who are willing to purchase them. Prices are set to fall sometime in the future, as there is only so much a person is willing to pay for a home. More home buyers won’t go higher than the current rates for homes.
Rise In Population Is Causing This Real Estate Phenomenon To Take Place In Cypress, Texas!
Real Estate Articles / May 20, 2023
Population rise causes a rise in need for medical institutes, hospitals and other commercial real estate in Cypress, Texas.
What You Need To Know About Closing
Real Estate Articles / May 11, 2022
Whether you are buying property or selling property, closing is a crucial part that will make or break your deal. We have listed major pointers that will help you deal with your next closing much better.
Late 2022, Early 2023 Market Trends
Real Estate Articles / Dec 05, 2022
Real estate investors are keen to invest in real estate. End of year real estate trends and market predictions and trends that can be expected in commercial real estate for 2023.
Purchasing Commercial Real Estate? Consider These 5 Things Before You Buy
Real Estate Articles / Feb 09, 2019
Whether you are a seasoned investor, or you\'re researching for your first property there is always a certain risk factor that makes us hesitate before signing the dotted line.
Short term rentals are declining but you can still make money with the right kind of investment
Real Estate Articles / Jul 26, 2023
There are still opportunities to earn money from short-term rentals, despite the ongoing decline. strategic investments and a proactive approach can lead to success in the evolving short-term rental industry.
Navigating the Future of Real Estate: Trends in Houston and Beyond
Real Estate Articles / Apr 01, 2024
Exploring Real Estate Trends in Houston: Embracing Online Innovations and Smart Home Features
Everything you need to know about capital gains tax and real estate investment
Real Estate Articles / Apr 01, 2022
Capital gains tax is levied on the profits made when you sell property or sell investments owned by you. Here’s how you can be exempt from taxes along with the top tax tips for investors and property owners.
This Is How Multifamily Real Estate Can Help The Retail Sector
Real Estate Articles / Jan 31, 2023
Having a multifamily property in a retail center is beneficial for both the buyer and seller and the residents of the property. The demand for rental communities that offer combined spaces for living, working, and entertainment is on the rise.
How is crypto and blockchain changing real estate business and money making?
Real Estate Articles / Oct 14, 2022
Cryptocurrency and blockchain technology is changing the real estate business in many ways. Real estate investing has started shifting to a digital and virtual space slowly.
Houston excels in the latest ranking of top U.S. cities for working-class families
Real Estate Articles / Dec 29, 2023
Houston-The-Woodlands-Sugar Land Secures 30th Spot in National Economic Prosperity Rankings, Revealing Robust Growth Amidst Population Surge and Varied Socioeconomic Challenges