Homebuyers: Be Ready To Act This Winter

<article class="post-123682 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-123682"><span class="entry-date">December 20, 2021</span><div class="entry-header center-block text-center"><h1 class="entry-title">Homebuyers: Be Ready To Act This Winter</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Homebuyers%3A+Be+Ready+To+Act+This+Winter&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fhomebuyers-be-ready-to-act-this-winter%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p><img alt="Homebuyers: Be Ready To Act This Winter | Simplifying The Market" class="webfeedsFeaturedVisual wp-post-image" decoding="async" link_thumbnail="" loading="lazy" sizes="auto, (max-width: 549px) 100vw, 549px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/16150814/20211220-KCM-Share-549×300.jpg" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/16150814/20211220-KCM-Share-549×300.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/16150814/20211220-KCM-Share.jpg 750w" style="display: block; margin-bottom: 5px; clear:both;max-width: 100%;" width="358"/></p>
<p>To succeed as a buyer in today’s market, it’s important to understand which market trends will have the greatest impact on your home search. Danielle Hale, Chief Economist at <em>realtor.com</em>, <a href="https://www.realtor.com/news/real-estate-news/home-price-growth-is-slowing-down-but-that-doesnt-mean-prices-are-falling/">says</a> there are two factors every buyer should keep their eyes on:<span id="more-45704"></span></p>
<blockquote>
<p><em>“Going forward, the conditions buyers face are primarily dependent on two things: <strong>mortgage rates and housing supply.</strong>”</em></p>
</blockquote>
<p>Here’s a look at each one.</p>
<h4><strong>Mortgage Rates Projected To Rise in 2022</strong></h4>
<p>As a buyer, your interest rate directly impacts how much you’ll pay on your monthly mortgage when you purchase a home. Rates are <a href="https://www.simplifyingthemarket.com/2021/10/12/dont-wait-for-a-lower-mortgage-rate-it-could-cost-you/?a=712984-fa409495d5d70154d03a25e81e9540e2">beginning to rise</a>, and experts <a href="https://www.simplifyingthemarket.com/2021/11/03/experts-project-mortgage-rates-will-continue-to-rise-in-2022/?a=712984-fa409495d5d70154d03a25e81e9540e2">forecast</a> they’ll continue going up in 2022<em> (see graph below)</em>:<a href="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/16150727/20211220-MEM-Eng.png"><img alt="Homebuyers: Be Ready To Act This Winter | Simplifying The Market" class="aligncenter wp-image-45705" decoding="async" height="488" loading="lazy" sizes="auto, (max-width: 650px) 100vw, 650px" src="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/16150727/20211220-MEM-Eng.png" srcset="https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/16150727/20211220-MEM-Eng.png 960w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/12/16150727/20211220-MEM-Eng-400×300.png 400w" width="650"/></a>As the graph shows, mortgage rates are expected to climb next year. But they’re <a href="https://www.simplifyingthemarket.com/2021/11/08/two-graphs-that-show-why-you-shouldnt-be-upset-about-3-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2">still low</a> when you compare to where they were just a few years ago. That presents today’s buyers with some <a href="https://www.simplifyingthemarket.com/2021/11/24/how-smart-buyers-are-approaching-rising-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2">motivation</a> to lock in a low mortgage rate before they climb higher.</p>
<h4><strong>More Homes Are Expected To Be Available This Season</strong></h4>
<p>The other market condition buyers need to monitor is the number of homes available for sale today. The latest <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales"><em>Existing Home Sales Report</em></a> from the <em>National Association of Realtors</em> (NAR) shows the current supply of inventory sits at just 2.4-months. To put that into perspective, a <a href="https://www.simplifyingthemarket.com/2021/08/17/what-does-being-in-a-sellers-market-mean/?a=712984-fa409495d5d70154d03a25e81e9540e2">6-month supply</a> is ideal for a balanced market where there are enough homes to meet buyer demand.</p>
<p>However, there may be good news for buyers who are waiting for more options. A recent <em>realtor.com</em> <a href="https://news.move.com/2021-11-11-Low-Temps,-High-Expectations-Realtor-com-R-Survey-Shows-65-of-Prospective-Sellers-Plan-to-Enter-the-Market-this-Winter">survey</a> shows more sellers are planning to <a href="https://www.simplifyingthemarket.com/2021/11/18/home-sales-about-to-surge-we-may-see-a-winter-like-never-before/?a=712984-fa409495d5d70154d03a25e81e9540e2">list their homes</a> this winter, meaning more choices will likely be available soon.</p>
<h4><strong>What Does That Mean for You?</strong></h4>
<p>Even if your options improve some this season, it won’t significantly shift market conditions overnight. According to NAR, many more listings need to be available to move closer to a more <a href="https://cdn.nar.realtor/sites/default/files/documents/2021-10-25-weekly-real-estate-monitor-10-28-2021.pdf">neutral market</a>:</p>
<blockquote>
<p><em>“Given the average monthly demand . . . , 3.55 million homes should be on the market to meet a level of inventory equal to six months of demand, <strong>implying a shortage of homes for sale of 2.24 million.”</strong></em></p>
</blockquote>
<p>So remember, even with more homes expected to come to market this season, <a href="https://www.simplifyingthemarket.com/2021/10/08/whats-causing-todays-competitive-real-estate-market-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2">competition</a> among buyers will remain fierce as there still won’t be enough homes for sale to meet the current demand. <strong>That means you’ll need to act quickly when you’re ready to make an </strong><a href="https://www.simplifyingthemarket.com/2021/09/15/5-tips-for-making-your-best-offer/?a=712984-fa409495d5d70154d03a25e81e9540e2"><strong>offer</strong></a><strong>.</strong></p>
<h3><strong>Bottom Line</strong></h3>
<p>If you’re planning on buying a home this winter, more options are welcome news, but it doesn’t mean you should slow down. Let’s connect today so you have an expert on your side to help act as quickly as possible when the right home for you hits the market.</p>
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