With 2021 wrapped up, many in the real estate industry are eyeing the 2022 outlook.
On this latest episode of “You Have Real Estate” with Attorney Justin Clark, Dallas Lehman of RWI Properties and Orlando Realtor Eric Mock discussed industry forecasts.
Here were three notable topics that were addressed.
Will interest rates go up?
Interest rates are still historically low, but they are starting to go up slightly, Lehman said.
They have crept up to slightly above 3%, and it’s possible the initial months of 2022 could see that trend go up close to 4%.
Lehman said it’s still a great market to purchase or refinance in, but the sooner a move is made, the better.
“We’ll probably never see them this low again after we get out of 2022,” he said.
Are there still bidding wars?
There still is a lot of competition for homes, but the intensity of the bidding wars has lowered a bit, Mock said.
“The bidding wars aren’t what they were 2 1/2 months ago,” he said.
Mock added there are several factors why some homes stay on the market longer than others, ranging from how updated they are, locations, to what sort of financing sellers want to accept from potential buyers.
Mock said sellers prefer buyers to have conventional mortgages, and some homes that prohibit FHA offers can often stay on the market longer.
Can you afford more house than you think?
With rates still low, people might underestimate how big of a house they can afford.
“That’s been one of the hot topics of 2020 and 2021,” Mock said.
Given that, it’s important to consult a mortgage expert to calculate what type of loan can be secured and what the monthly payment would be.
For more information, watch the video above.