What the heck is going on with the real estate market?
And how long will rates stay so low?
Let’s face it, 2021 wasn’t such a great year for most. The pandemic affected everyone in some way. The real estate market was great for sellers, but not so great for buyers, and depending on the industry, employment was marginal.
In 2022 financially secure buyers that want to add to their real estate portfolio in terms of a second or third personal property, investment property, or vacation property will do fine. Financially secure households will always be ok. Whether you want a permanent vacation spot because you don’t want to bounce around the globe like you used to, or buy for investment, here are some reasons why 2022 might be a decent time to buy.
If you are lucky enough to be able to afford a second home, there is some good news for you. Rates continue to be extremely low but this is assuming you are financing your new purchase. If so, you will enjoy low monthly payments and if you are buying as an investment, you will enjoy the right off as well. Due to inflation however, the Fed has indicated [repeatedly] that they plan on raising rates, possibly up to four times in 2022, so don’t delay in getting into escrow. Believe the Fed when they say rates will be on the rise this year. Rates have been unbelievably low since 2008 so it’s time they get back to a usual rate. Anyone living on interest, like seniors, have had a rough go so they will be getting some relief soon. Yes, real estate sales prices may be higher than expected but if you are in it for the long haul, and the property is in a good location, your purchase should serve you well.
Investors are also in a good spot when it comes to renting out a home as a residence or as a vacation spot. A vacation home can be a solid investment if the trend towards staying away from large crowds and hotels continues after COVID-19, but, regardless, there will always be a market demand for desirable vacation properties. The average rent of a home in New England is in the $2700.00 a month range so that should give all real estate investors comfort.
If you are buying a second home or a vacation property for yourself then enjoy the low rates even if you have enough cash to write a check. Use that cash for an investment and take advantage of the low rates. Whether you look at it as a vacation spot or just another asset, buying real estate is one of the best investments anyone can make.
If you need a firm to assist in preparing any property for sale, whether commercial or residential, an estate sale company can manage this task for you. Look for someone with experience, insurance, referrals, and a good track record.