Will the Spring Housing Market be Brutal?

We hate to be the bearer of bad news, but if you thought the Spring buying craze of 2021 was nuts, 2022 is shaping up to be even more insane. There are three factors playing into the current housing climate and they are: ever rising home prices, record low inventory, and mortgage rates quickly rebounding from their all-time lows. 

Part of what will likely make Springtime buyers frustrated is those rising mortgage rates. So far during this Covid-19 pandemic, the low mortgage rates have offset rising home costs. But with mortgage rates creeping back up to near pre-pandemic levels, buyers can no longer feel that relief. This will potentially result in monthly mortgage payments increasing by a few hundred dollars.

What About Inventory?

In normal years, Spring is a popular buying and selling time. The weather is warming, curb appeal is at an all-time high, and time spent in escrow means you likely won’t be moving in the middle of a school year. Experts feel that this Spring won’t be any different. Inventory will start to tick up in the coming weeks. Buyers should be prepared to spend more than last year, though this comes with the added benefit of (potentially) fewer buyers that have been priced out of the market.

Of course, all of this doesn’t mean that buying a home is impossible. It’s never impossible! It just won’t necessarily be easy. 

If you’re still sure of buying or selling this Spring, allow us to help you during this somewhat overwhelming process. Or, if you’d rather go on vacation instead, perhaps consider one of our luxury lake house vacation rentals!