2021 was a tough year for home buyers. Low mortgage rates and work from home flexibility brought in many first-time home buyers to Hudson County. However, record low housing inventory, rising home prices and fierce bidding wars made housing harder to come by this year.
As per Mark Trompeter who’s the founder of Trompeter Real Estate, “We will see a lot of changes in the Hudson County real estate market in 2022.” Here are some things we predict will change:
Demand for Homes will Stay Strong
Hudson County’s Demand for homes has been growing steadily throughout 2021. According to Triplemint’s market report, the total number of properties sold in Hudson County was up by 36% in 2021 compared to 2020 as a direct result of record low mortgage rates. “Interests rates are still low and will continue to stay lower compared to the normal rate, plus the rental prices are rising to a point where now we have bidding wars on rentals in Hudson County” – Mark Trompeter.
If the rents stay increasing and interest rates stay low, there are very high chances that home seekers will prefer buying over renting causing a high demand for homes in the area.
Housing Inventory Will Continue to Be a Struggle
Many experts believe that the coming year’s housing market will start getting back to normal and so will the inventory levels. Experts believe that many investors will start taking advantage of the seller’s market and put their rental property for sale. However that does not mean that the inventory will be enough to meet the huge demand. According to Mark, “The Inventory for sale will still be low compared to the high demand caused by low interest rates”
How Long Will Homes be on the Market For?
The Average Number of Days on market helps determine the demand for homes. Short amount of days on the market means that there are many buyers wanting to buy a home but not enough inventory. Experts suggest that due to high demand and less supply, the average number of days on market will continue to stay low. Home selling expert Mark says “If the home is priced right it will stay on market for less than 2 weeks”
Home Prices Will Go Up
Many experts believe that prices will rise for homes in 2022. Most of them predict the prices to go up by about 5%. According to Mark, “The prices will rise because people are coming back to work in the office. Hudson County also has a close proximity to Manhattan and some people coming back to work in Manhattan will also move to Hudson County. Plus, the prices of homes in Brooklyn have been continuously rising. Lately Hudson County has also been getting a lot of hype from the media which will increase the demand and the prices of homes.”
Should You Buy a Home in 2022?
Without a doubt, Yes! First it’s always a great time to buy a home because it’s one of the safest long term investments. As per Mark, “The interest rates are low and we don’t know when we will get these kinds of rates again, so take advantage of the opportunity if you can.” The rent prices are also rising which puts buyers at a position where they could be paying less for their mortgage than for rent. So calculate your expenses and check out if you can afford to buy a home. If you can, don’t give it a second thought!
Is 2022 a Good Time To Sell?
Looking at the data of home prices going up, the days on market being shorter, low inventory and the huge demand for homes indicates it’s a great time to sell because sellers will get more return on their investment on the property. Mark pointed out “When you go to a party, they are all buying properties and everyone at the party wants to buy a home as well. This keeps the demand flowing while the inventory is low and it is a great time for a seller to get more money for their home.”
Ready to Buy or Sell?