WHAT’S COMING ON THE 3RD QUARTER OF 2022?

 

Houston has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. With the recession looming and inflation through the roof what could be coming on the 3rd quarter of 2022?

The Houston metro area offers great opportunities for investors who are looking for a stable market. Markets offering both cash flow and equity growth at a price that is STILL well below their replacement value.

According to many experts, Houston has been in seller mode for several years now. Up until now, there’s no reason to think that will change in the 3rd quarter of 2022.

With a record no. of sales in 2021, the Houston housing market is off to a big start in 2022 that continues on to the coming months ahead.

HOUSING MARKET PREDICTIONS FOR AUGUST 2022

The cost of buying a single-family home jumped more than 20% nationwide in April from the same month last year, according to the latest S&P CoreLogic Case-Shiller Index.

Higher mortgage rates added to the cost of buying a home, as they rose sharply in May. However, those big spikes may level off.

Nadia Evangelou, senior economist at the National Association of Realtors (NAR), says rates should average around 5.7% by late 2022.

But these higher costs are putting pressure on the housing market. The Mortgage Bankers Association (MBA) recently reported that a steep decrease in mortgage applications to buy and refinance. They say it is “pushed the market index down to its lowest level in 22 years.”

As we head into the typically active homebuying summer season, experts chime in on what we can expect from prices and rates.

HOUSING INVENTORY PREDICTIONS FOR THE 3RD QUARTER OF 2022

Home prices might expand, but the options will, too, according to some economists.

The Realtor.com inventory forecast made a sharp change in course from the beginning of the year to now, going from just a 0.3% rise in inventory to their current prediction of a 15% jump in the for-sale housing stock.

“While housing costs remain high, pushing home shoppers to make tough choices about their budget priorities. The number of homes for sale is expected to continue to grow, building on the turnaround begun in May,” according to the Realtor.com report.

“As more homeowners look to make adjustments to fit changing personal needs. It is also expected to take advantage of favorable market conditions to access the significant amount of equity they have likely accumulated. Unfortunately, home shoppers will have more choices.”

Oil prices have a big impact on Houston's housing market. As oil prices plunge, it could mean a potential slowdown for Houston’s economy. Keeping aside the oil prices, the Houston Real Estate Market forecast for 2022 is still on the positive side.

Although the desire to own a home remains strong, the combination of higher home prices and rising mortgage rates was making it increasingly difficult for many first-time buyers to afford one.

Houston and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term.

In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Houston can become a buyer’s real estate market if the supply increases to more than five months of inventory. 

Therefore, in the long term, the Houston real estate market remains strong and skewed to sellers. Due to a persistent imbalance in supply and demand, we can see this being the trend.

Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment. While the rapid real estate appreciation Houston witnessed earlier in the decade has slowed.

The combination of a strong economy, low unemployment, and a lack of inventory in many market segments continue to push home prices in Houston.

Do you think your business will be affected by the real estate predictions of what's coming on the 3rd quarter of 2022?

Let us know in the comment section below!


About the writer: Shaura Cuyan writes all the hottest Real Estate trends and predictions for Summit VA Solutions! She has previously written for a number of freelancing gigs both locally and internationally and writes her own blog on lifestyle and current issues. She is a Graduate of Bachelor of Arts in Communication and has a Masters degree in Development Communication.   

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