Complex. Competitive. Kinetic. These are just a few words that come to mind when I think about the Spring 2022 housing market.

Generally, the national and local housing markets are cyclical. This means that certain behaviors of the market are recurring from year to year. Spring and summer are considered the busy season for home sales and leases. Housing market activities begin to wane as we enter fall, with a significant drop toward the beginning of December. Additionally, based on certain housing and economic characteristics, we can detect trends to predict market activity in the coming quarters and years. Interest rates, new construction activity, the availability of raw materials, and the job market are all key indicators of housing market trends. 

In 2022, the country became largely aware of what many market experts had previously predicted. The majority of the United States was (and still is) experiencing a significant housing shortage. Beyond the shortage of single-family homes, rent prices continue to trend upward as available rental units stagnate. The cost to purchase a home increased sharply in terms of actual purchase price and interest rates. Resale homes received multiple offers within days, sometimes hours, of being listed on the market. New construction inventory was nearly nonexistent around Greater Houston. As lenders worked diligently to develop more creative strategies and products to compete with the influx of cash buyers, the law of supply and demand was on full display. 

Fast forward to January 2023, and rent prices continue to increase with little sign of retraction. In the resale world, the cyclical nature of the winter market created opportunities for the prepared buyer to purchase a home with fewer obstacles than in springtime. As new construction activity continued across the city, builders realized the return of inventory and spec homes. With that came the return of builder incentives and price reductions. More available homes and fewer ready-to-go buyers (temporarily) are optimal conditions for seller concessions and negotiations. Rounding out the home buyer bonuses is the decline in interest rates. It now costs less to obtain a mortgage than it did three months ago. 

What does this mean for buyers contemplating a return to the housing market this spring? It means now is the time to make informed decisions and execute your strategy! Prepared buyers willing to brave cooler temperatures during the move have learned that winter offers certain advantages. We can only predict what the future might bring. However, we know our options today. If you are considering moving this year, let's connect to get you on track to purchase before the spring returns. 

For more information about why buying now is ideal, check out the below articles:

Is Now A Good Time To Buy A House? What To Know In 2022

Why It Makes Sense To Move Before Spring

Now may be a great time for buyers to score their dream homes as mortgage rates dip back towards 6% and desperate sellers are willing to accept most offers