Where the Housing Market is Headed in 2022

Over the past couple years, the housing market has seen an unexpected surge with historically low interest rates and an incredible demand for homes that better meet the needs of homeowners. But where do we go from here? Landsea Homes has the inside scoop from NFM Lending, and we’re here to share their housing market predictions for 2022 and help get you started on your new home journey.

What NFM Lending Has to Say

Despite witnessing the best housing market we’ve seen in the past 15 years, NFM Lending predicts that 2022 will be more about returning to a more all-around balance. The following are a few trends we’re expecting to see:

  • Continued record appreciation for real estate
  • Measures to counter inflation will ease as supply chain issues continue to improve
  • Rates will start to rise but will remain historically low through 2022
  • Rents are expected to outpace home appreciation, making renters think twice about holding off on buying a home

As we’ve seen since the rise of the pandemic, families have started to make decisions based on what’s most important to them—and this year will be no different. Gone are the days of trying to live close to work when we’re seeing a higher percentage of multigenerational families living under one roof and households that have at least one member permanently working remotely. With that being the case, the most crucial factor in today’s housing market is finding a home that not only fits the way you live but also the way you work.

Part of the new normal is ordering groceries, shopping and watching new movie releases from our couch. That means families are able to eliminate unnecessary bills, such as a second or third vehicle that may have monthly costs of $600/month but now is no longer needed. When that extra money goes into your savings, it can set you up with an additional $100,000 on a home purchase. Though rates and prices are not something we can control, they can easily be managed alongside monthly finances and expenses.

The pandemic has forever changed our lives, and it’s beneficial to have an open mind when it comes to shifting from the traditional norms to the many ways of living this new reality has introduced us to. And now that you have an idea of where the housing market is headed in 2022, we’ve gathered a few easy steps to help get you started on your home buying journey.

1. Determine Your Budget

If you’re looking to buy a new home, you’ll first want to determine how much you can afford before going on your online searching spree. You’ll want to start by adding up your total income each month, including your salary, investments and any other money coming in on a regular basis—and that’s just the foundation.

Then comes accounting for any debt and monthly expenses, such as credit card bills, car payments, student loans, groceries, subscriptions (yes, streaming TV counts), fitness memberships, etc. This will put you in a great position to understand what kind of mortgage payment you can comfortably handle each month, and don’t forget to include property taxes, insurance, HOA or co-op fees and utilities if you currently own a home.

Now that you have a monthly budget, it’s time to find out how much of a down payment you can afford with your savings. Explore the convenient payment calculator so you can easily determine your total budget for a new home.

2. Get Pre-Qualified

You may have a general idea of how much you can invest in your journey, but now the next step is to get pre-qualified. This is when you’ll get an estimate from an experienced mortgage loan originator of how much they would be willing to lend you and at what interest rate with a fast and easy process that doesn’t involve a credit check just yet.

Landsea Homes’ preferred lender is highly acclaimed and known for their simple online application process. While there’s no commitment to purchase from us or finance through Landsea Mortgage, you’ll find the information very valuable in your new home search.

 

3. Start Your Home Search

Once you know your price range and have been pre-qualified, you can start looking for a home that fits both your budget and your lifestyle. And opting for a new-construction home from Landsea Homes means there are valuable perks you won’t find with resale options.

First things first, everything in your home will be brand new—from the foundation all the way to the upgraded appointments. Newer features and options to personalize mean you’re building equity into your home with energy-saving and sustainable options through our High Performance Homes initiative.

Whether you’re looking for ultimate flexibility with LiveFlex® options, extra storage or office space, Landsea Homes has a wide range of communities in Southern California, Northern California, Arizona, Texas, Florida and NYC Metro with price points that suit everyone from first-time homebuyers to empty nesters and beyond.

4. Get Pre-Approved

Once you’ve found the Landsea home of your dreams, you can count on Landsea Mortgage to start the pre-approval process. Pre-qualification is a great tool to understand how much home you can afford, but then you’ll want to get pre-approved for a mortgage once you know you’re ready to purchase.

This crucial step involves submitting an official loan application and supplying the lender with financial documentation so you can get the real numbers. It’s also when you’ll see what interest rate and APR will be available to you and get the opportunity to lock in a specific rate if eligible.

Dream home? Check. Approved mortgage loan? Check. Now all that’s left to do is enjoy your incredible new Landsea home and all the homeownership perks that come with it.

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