Real estate market 2022 – is it the right time to buy?
Recent years have seen an unexpected boom in the real estate market. Thanks in large part to lower stamp duties, tax breaks and historically low interest rates in many countries. What’s going on with the real estate market in 2022, and is it a good year to buy?
Forecast for 2022
So far, 2022 has seen low housing stock and rising prices, which has pushed up house prices. The median home price rose 15% in February, and interest rates also jumped, with the average U.S. interest rate for a 30-year fixed mortgage rising from 2.65% to 3.85% in the first three months of 2022. In the UK, where average house prices increased by 9.6% in January 2022, and the central bank raised interest rates to 0 .75%, the largest increase in the past two years.
With interest rates rising and inflation rising around the world, this imbalance between supply and demand of the past two years should ease a little. This change is not necessarily bad news, just a return to a more stable situation after the unusual and unique housing market we have experienced over the past two years.
How do I access the property ladder?
This is potentially the perfect time to get on the property ladder. The first set is to get a mortgage pre-approval. A mortgage, in principle, is a document provided by a mortgage consultant that gives you a general idea of how much you can lend for your home loan. A mortgage broker like Trussle can check your credit history and eligibility with 18 different lenders and give you a hard figure on how much you can borrow. A mortgage, in principle, is a more accurate estimate than an online mortgage calculator because it takes into account your income and expenses, but is not a guarantee that you will be approved for a mortgage.
Once you understand how much you can borrow, you can set a budget and start saving for the required deposit or down payment. The larger the deposit you have, the easier it will be to get approved for a mortgage and the more options you will have. Patience is essential, especially for first-time buyers, as it will take time not only to budget and save, but also to research and find the right property. Start improving your drinking habits and get ready. Try using a budgeting tool like Mint to help you get started. With a budgeting tool, you can start tracking your expenses as well as your credit score. If you’re feeling a bit overwhelmed where to start, a good place to start is to do a credit check and get a report. You can do an online credit check for free very easily with Clear Score. Once you see what debts or potential obstacles you have, you can start paying the highest interest on credit cards or other debts. Raising your credit score is essential if you are considering applying for a mortgage.