Here’s What You Need To Know If You’re Buying or Selling in 2022 Inventory, Interest Rates, and the Rise of New Construction January 6, 2022 By Liz Johnson We’ve entered a new year, and with that comes changes and new opportunities for the year ahead. Whether you’ve considered buying or selling we’re breaking down what experts say you can expect this year. The Rise of New Construction Looking to build? New construction is on the rise and in October 2021, the sales of new construction single-family homes hit a six-month high. Builders and construction companies are working hard to keep up with the demand. The cost of labor and materials has also increased post-pandemic, so expect to pay more than in pre-pandemic years and while it may take longer you can customize your home to include multi-functional spaces in this new era where more people are at home. Inventory Inventory will be key to 2022′s real estate market. After the lockdown in 2020 brought our industry to a halt for a few months coupled with record low interest rates, we are still trying to meet high demand with lower than average supply. The overall housing inventory in Michigan is 54% lower than in 2019, according to November data from Realcomp. Since January, the median housing price has also increased 18% in Michigan, according to Realcomp data. Expect this competition as well as gradual price increases to stay in 2022, making it a great time to list your home. Interest Rates The National Association of Realtors’ 2022 forecast predicts there will be two interest rate hikes next year. The expectation is for the interest rate to go from its current average of 3.25% for a 30-year fixed mortgage to 3.5%. This is still lower than the pre-pandemic rate of 4%. However, buyers don’t be discouraged, there will still be low rates similar to last year so it is still a great time to buy, especially if rates do continue to rise following this year. If you have any questions or are interested in working with one of our agents to sell your home, head here to connect with a DOBI agent.