When summer begins, more people start buying houses so they can move in before fall arrives. These summer 2022 predictions might help investors make smart decisions as they expand their portfolios.
Higher Interest Rates
With interest rates rising, homebuyers are reluctant to take out a mortgage. This makes it harder for sellers to make a profit, but it could also make it easier for investors to buy homes. Since they have less competition, they might be able to get homes at a cheaper price. Housing prices might start to drop during the summer as fewer buyers enter the market.
In the past few years, housing prices skyrocketed as people became reluctant to sell their homes. When a house entered the market, buyers entered a bidding war and often ended up paying more than they expected. The prices probably won't even out entirely, but with less competition and more people slowly adding homes to the market, prices might start to drop and make investing more affordable.
While more people are gradually placing their homes on the market, the inventory is still low. Buyers have to act quickly to buy a house for a fair price. If an investor decides to sell their inventory, they could expect several bids but less competition than they would have seen a year ago.
Overall, while the housing market might continue to favor sellers, buyers could gain an edge as prices start to stabilize. They could also look at rental property as high interest rates make it hard for people to buy homes.