In a fast-paced market, home buyers have to be prepared for competition. A good home will attract multiple interested buyers and, if you hope to be successful, you'll have to move quickly and make an offer that rises above the rest. These days, that's especially true. With a lower than normal number of homes for sale and buyer demand still elevated, listings are seeing more traffic than ever. In fact, according to one recent analysis, the number of showings rose 11.5 percent last year from the year before. In December, the average listing had six showings and, in some markets, much more. For example, listed homes in cities like Seattle, Denver, Orlando, and Dallas averaged more than 10 showings per listing – and that's at a time of year when the market typically slows. Fortunately, inventory is supposed to pick up this year, which will give buyers more options to choose from and cut down on buyer competition. But the improvement won't happen overnight. That means, home buyers looking at listings in the weeks ahead need to be prepared to act fast when they find a house that fits their needs. More than likely, they won't be the only buyer interested. (source)

Last year was a good year for home sellers. A combination of elevated buyer demand and rising home prices meant homeowners looking to make a move could sell quickly and for a profit. And, according to new numbers from ATTOM Data Solutions, their profit margin in 2021 was the biggest in 13 years. So how big was it? Well, according to the report, the typical home sale last year generated $94,092, representing a 45.3 percent return on investment compared to the original purchase price. That's up from $64,931 in 2020 and 71 percent higher than it was two years ago, when sellers made $55,000 on their home's sale. Todd Teta, chief product officer at ATTOM, says 2021 was one the best years ever for home sellers. “What a year 2021 was for home sellers and the housing market all around the U.S.,” Teta said. “Prices went through the roof, kicking profits and profit margins up at a pace not seen for at least a decade … 2021 will go down as one of the greatest years for sellers and one of the toughest for buyers.” (source)

Unless you're a real estate investor, you probably aren't making home buying decisions based on market conditions. Most of us decide to buy a house based on what's happening in our lives. A growing family, a new job, or a desire to move closer to family and friends is more likely to motivate your decision to buy than mortgage rate fluctuations or price increases. However, if you're thinking about moving sometime soon, conditions can definitely influence how soon. Which is why expectations that mortgage rates will rise this year are raising expectations that home sales may spike this spring. Simply put, home buyers who might have waited till later in the year may bump up their home purchase plans to lock in low rates before they move any higher. But whether or not affordability concerns lead to a sales surge will depend a lot upon spring inventory. Because, while buyers want to get the best deal, they also want to get the best house. And if inventory doesn't pick up, waiting for better options might outweigh the desire to buy before a potential mortgage rate increase. (source)

There are few things that haven't been affected by the pandemic over the past two years. Almost everything about the way we live has changed in one way or the other. That, of course, is especially true of the housing market and economy. The pandemic upset the long-term trends of supply and demand and made it much more difficult to predict where markets might be headed in the weeks and months ahead. But now that we're two years into it, the pandemic and its effects are a little more predictable and, according to the latest forecast from Fannie Mae's Economic and Strategic Research Group, it may mean we're beginning to settle into a new normal. “The ESR Group expects inflation to remain elevated in 2022, while still unknown is the extent to which structural shifts in the economy and housing market over the past two years become permanent,” the forecast reads. “However, the ESR Group foresees economic growth returning to more modest levels consistent with the long-run trend, while home sales and house price growth slow to a more sustainable pace.” In other words, while things are still somewhat unpredictable, there's a growing expectation that the volatility of the past two years may finally be coming to an end. (source)

Work is a fact of life. It's how we pay the bills. It's also a big part of how we choose where we live. After all, nobody wants to spend three hours a day driving to and from the office. So the closer we can live to our workplace the better. But while a short commute has always ranked high on home buyer wish lists, the pandemic has changed that. More Americans are able to work remotely and it's given them more freedom to choose where they live. A lot of us, though, are still waiting to hear what our long-term work arrangements will be. In fact, according to a recent survey, just 52 percent of workers say their employer has announced post-pandemic arrangements. That means, many of us are in limbo. And naturally, that effects home buying plans. For example, the same survey found the number of respondents who said they were considering a move in the next three years was greater among those who knew their long-term work arrangements than those still waiting to hear. That means, there are a lot of potential home buyers on the sidelines until their employer lays out post-pandemic plans. As those plans are announced, they'll have a big impact on the housing market, as it'll determine who's buying and where they're looking to move. (source)

In a competitive market, it isn't uncommon for a home to attract multiple buyers. When this happens, buyers have to make their offer more attractive to the home's seller in order to have it chosen over other buyers' offers. Typically, that means more money. This is the primary reason for recent home-price increases. For the past few years, there haven't been enough homes for sale to satisfy buyer demand, which has caused more competition, bidding wars, and a higher percentage of homes selling above their list price. But, like any market, the housing market has its ups-and-downs. So what should winter buyers expect when out looking at homes? Well, according to one recent analysis of December home sales, there's still a large percentage of homes selling above list price – though it's fallen from its summer peak. The numbers show 43 percent of homes sold above list price during the final month of 2021. That's down 14 percent from its peak last June, but 9 percent higher than one year earlier. That means, winter buyers will likely find the market less competitive than it was last summer, but still competitive enough that they should prepare for the possibility that they'll have to outbid other buyers. (source)

Home prices are always a hot topic among prospective home buyers. The reasons for this are obvious. After all, the price of homes in the neighborhoods you're targeting will, in large part, determine whether or not you can afford to buy one. So what might happen to prices, and the overall market, in the year ahead? Well, a lot depends on how many homes are available for sale. The main factor pushing home prices higher these days is a lack of inventory. Naturally, if inventory improves – either because more homeowners list their homes for sale or more new homes are built – it will help balance the market and keep prices from spiking. With a healthier supply of homes, home sales will rise and there'll be less competition between buyers. That's the best case scenario for the 2022 market. On the other hand, if inventory doesn't improve and prices continue to climb higher, affordability conditions may begin to suppress buyer demand – which would also bring more balance to the market, albeit in a less positive way. (source)

It'd be easy to get the impression that owning a home is more expensive than renting. After all, home prices have been increasing for years – and especially over the past year. But, according to a recent analysis from ATTOM Data Solutions, homeownership is still more affordable then renting in 58 percent of counties. The analysis compared the cost of owning a median-priced home to the average rent on a three-bedroom property in 1,154 counties and found that homeownership expenses consumed a smaller portion of average local wages than renting. Todd Teta, ATTOM's chief product officer, says home prices are rising faster than rents but have yet to flip the affordability equation. “Home prices are rising faster than both rents and wages while wages rise faster than rents,” Teta said. “Yet homeownership still remains the more affordable option for average workers in a majority of the country because it still takes up a smaller portion of their pay.” One of the main factors driving homeownership's continuing affordability is the fact that mortgage rates remain low, which helps to counteract rising prices and keeps mortgage payments manageable. (source)

The percentage of Americans who say it's a good time to sell a house rose 26 percent year over year, according to the December results of Fannie Mae's monthly Home Purchase Sentiment Index. The survey – which asks Americans what they think about buying or selling a home, mortgage rates, home prices, their jobs, and household income – was relatively flat from the month before. However, year-over-year comparisons show a large spike in the number of respondents who think it's a good time to sell – while the number who believe it's a good time to buy saw a significant drop. Doug Duncan, Fannie Mae's senior vice president and chief economist, says the results may be a sign that the housing market will soften this year. “The HPSI's underlying components changed dramatically in the last 12 months – particularly the two related to home-buying and home-selling sentiment – and we have seen the index drift slightly downward since March 2021, an indication that the housing market may begin to soften in the coming year,” Duncan said. (source)

Shopping for a home to buy can be challenging in markets where there aren't many homes for sale. For one, it's more difficult to find an available house in the right neighborhood with the right features. Then, when you do find one, you often have to outbid other prospective buyers who also want it. But, while the number of homes for sale is still lower than normal, you shouldn't let the current inventory crunch put your home-buying plans on hold. Why? Well, there's an expectation that this year's market will see inventory rebound from the declines suffered in 2021. And, according to a new report from the National Association of Realtors' consumer website, there is already evidence that new listings are beginning to bounce back. In fact, December data shows 20 percent of the 50 largest U.S. metros saw more new sellers enter the market than last year at the same time – and some of those cities saw double-digit increases. That doesn't mean those markets won't still be competitive but it does offer hope to home buyers that they'll have an easier time finding a house that fits their needs. (source)