What Are the Current Housing Trends? We will examine the latest trends to determine where homebuying is headed. The housing market is a hotbed of competition, and rising mortgage rates are likely to continue to exert pressure on homebuying. The spring home buying season will be a busy time, so be prepared to get in line. Here are some important factors to consider. Listed below are a few tips for first-time buyers.
Home prices continue to rise. Although the rate of American mobility has slowed since the 1980s, a combination of factors is likely to grind the rate down further. While workers may need to relocate for a new job, it will be very difficult for millions of households to change homes. While prices continue to soar, they may finally slow in the second half of 2022. In the meantime, buyers are likely to remain price-sensitive.
In addition, more people are renting. There are now 19.4 million more renters in America on the eve of the pandemic, and economists are worried about a long-term decline in long-distance moves. Despite this, renter mobility is expected to continue to decline. A recent study published by Trend Hunter cited an ongoing shift toward sustainability and minimalism as two of the most significant trends in housing. It also highlighted three emerging trends in neighborhood design, such as the emergence of eco-friendly materials and reversible architecture.
Rising mortgage rates are likely to make home prices more expensive for first-time buyers. By 2022, mortgage rates will be at a six-year high, and mortgage payments as a percentage of income will reach a record high. This will lead to fewer home sales, and homes will remain on the market for longer periods of time. This will create an environment where buyers must act quickly to secure the most desirable home. While the real estate market is still a seller’s market, the number of buyers is still far outpacing the supply.