The Covid-19 pandemic has put a hold on the home-buying process. No one knows exactly what the future has in store. But housing experts tell CNBC Make It that in 2022, buyers can expect similar trends to the past two years: elevated prices, low inventory and fast turnaround. Here’s what you need to know if you plan to buy a house in 2022.

Inventory will remain scarce
Before the pandemic, there was a low housing stock in America. Builders are working extra hard to ramp up production, inventory will remain scarce. The number of homes listed for sale went down to a record low at the end of November. But there will of course be more listings in the spring and summer, as normal.

Interest rates will rise
The Federal Reserve is expected to raise interest rates a few times in 2022, which means portage rates will likely to rise as well. The silver lining of higher mortgage rates is that speculative buyers will be in the market because there is less money to be made. This is important for agents to know so they can successfully inform their clients and make them aware of the marketplace.

Prices won’t drop
Those hoping that the competition will slow down in 2022 are out of luck. Bidding wars are still expected to happen, particularly in the spring and summer. The trends listed above mean prices will continue to go up. Realtors should advise their clients and make them prepared as to what is about to happen.

Young buyers will be at a disadvantage
Millennials who are first-time buyers, will remain at a disadvantage compared to older generations when it comes to buying a house.

Baby boomers are trying to stay in their homes longer as they live longer. So more and more first-time buyers are likely to need financial help from friends and family to make a down payment. This will limit as to who can afford the house.

Buyers should be prepared
Buyers should definitely do their research before buying. It will be important to watch new listings that they are considering. But buyers should not overpay. Agents should make sure of this too. Realtors should tel their clients to compare home prices from prior years in their local areas to the listings they are currently considering.

If you would like to join the team or learn more about LUXE, call us at 305-809-7650 or schedule an appointment here.