2022 continues to be a hot market for home buyers – and sellers – across the United States. According to Realtor.com, existing home sales are predicted to increase by 6.6% this year,1 despite a likely (but modest) increase in interest rates. For those looking to purchase a home this year, creativity and compromise will be two things to keep in mind when searching for a home.
ALBUQUERQUE: LOW SUPPLY AND HIGH DEMAND FUELS COMPETITIVE MARKET
In Albuquerque, a continuously low supply of homes for sale has created a strong market for sellers, who often have the upper hand when it comes to negotiating an offer for their home. According to the Greater Albuquerque Association of REALTORS®, the average home price increased 17.5% in 2021,2 and a lack of inventory in 2022 continues to drive this trend upward.
Amy Neal, a HomeAdvantage® real estate agent with ERA Sellers & Buyers Real Estate, says buyers need to get more creative with their offers if they have their heart set on a home. “A fairly new concept to our market is a Time Off Market fee, or TOM fee,” she continues. “This is a non-refundable amount that a buyer will offer the seller to compensate them for the time they will be off of the market for the buyer to do their due diligence.”
For those looking to buy a home, Amy recommends speaking with a mortgage loan officer and applying for pre-approval first. “An offer submitted without a pre-approval letter will go nowhere,” says Amy. “Sellers will not take you seriously if you have not taken this step.”
Amy also advises enlisting the help of a qualified real estate professional. “It is important that you have someone loyal to you to protect your interests. You should feel comfortable that your real estate agent can educate you on current market conditions, what your contract obligations are, and the importance of due diligence,” she says.
CALIFORNIA'S TRI-VALLEY: STILL A SELLER'S MARKET
In the Livermore area, interest rates have increased 14% as of February 3, 2022, according to Bay Area Market Reports. Despite the increase, interest rates remain historically low and the real estate market remains very strong.3 At the end of 2021, the median listing home price in Livermore was $978,000, up 13.8% from December 2020, with homes selling 4.03% above the asking price on average.4
Home sales in the area are expected to peak in late spring/early summer as the number of listings typically goes up this time of year. However, as long as demand continues to outpace supply, Livermore will remain a seller’s market in 2022.
1. realtor.com/research/2022-national-housing-forecast/
2. gaar.com/market-statistics/annual/2021-annual-market-statistics
3. bayareamarketreports.com/trend/tri-valley-real-estate-market-report
4. realtor.com/realestateandhomes-search/Livermore_CA/overview
