Why 2022 is the Year to Buy a New Home
If you’ve been on the fence about buying a new home in Pittsburgh, there are plenty of good reasons to finalize your decision by the start of the new year. The main motivating factor should be that home prices are not expected to decrease any time soon and they are, in fact, projected to rise for the foreseeable future. Interest rates are also still low compared to pre-pandemic rates, though these, too, are increasing. If you’re considering buying or building a new home, now is the time to lock in your rate and begin the process!
Take Advantage of Today’s Home Prices
Today and going into the new year, there is certainly less volatility in the real estate market than we saw in 2020 and 2021. Then, prices were increasing at breakneck speed as demand shot up. We all heard stories about bidding wars, waved inspections, and even waved appraisals as buyers brought cash to the closing table. Now, as demand cools, home prices are, too. But if you think they’ll start decreasing anytime soon, you may want to re-evaluate.
Zillow predicts home prices will rise 14.3% in the next year, and much of that has to do with the cost of building products and supplies. Lumber, while much more available than it was a year ago, continues to cost well above what it was pre-pandemic. The same is true for just about every component of a home — from flooring to HVAC systems to paint. As with housing in general, the demand is just too high as manufacturers struggle to keep up, and prices reflect that.
Demand for new houses isn’t letting up anytime soon. The U.S. currently has underbuilt housing by at least 5.5 million homes. Even as the pace of building picks back up, it will take five or six more years before supply and demand level out, continuing to buoy home prices.
Lock in Today’s Low Interest Rates
Still-low interest rates are another great reason to buy a new home now. Even with higher home prices, today’s low rates help to keep monthly mortgage payments reasonable for many home buyers. And if you have a certain budget that you must stick to, the ability to afford a larger home is an added perk of low interest rates. But they won’t stay low forever, and are predicted to rise substantially in 2022.
Now is the Time to Build
If you’ve been in “wait and see” mode for the last few years, home prices and interest rates will only rise as you continue weighing your options. Contact us to speak with a preferred lender about your best choices for financing a new home today. Then, schedule an appointment to see our model homes and start this once-in-a-lifetime process. We can’t wait to build your new home in the new year!