Real Estate Outlook for the Last Quarter of 2022

By: Maria Girlie Pascual

Yes, mortgage interest rates have greatly slowed down real estate sales from the frenzied buying and selling to a more “normal pace” akin to the 30-45 days market time prior to Covid. The current pace is a far cry from the 24-hour to 48-hour bidding wars that dominated the market when interest rates were as low as 2.5% for a 30-year conventional mortgage. Today, they have gone up considerably, and as of press time, is at a 7.25% APR for a 30-year loan. It seems that the federal government has achieved its goal of slowing down the real estate market, and coupled with high gas prices and rising prices of goods and services, buyers and sellers have taken a pause, although for us, seasoned real estate brokers, nothing really has changed much except for the buying frenzy. I am still busy helping my clients navigate the change in market conditions, including explaining to them how the benefits of owning a property will still outweigh the convenience of renting, especially now that rents have seen a hefty increase of 5% to 15% in prices. Plus real estate is a hedge against inflation, and the volatility of the current stock market. Our current billionaires and “gazi-llionaires” have invested heavily in real estate properties after making their fortunes in bitcoins and stocks in the last three years.

Don’t hesitate. The most frequent question I am asked is, “Isn’t it better to save for a bigger down payment than to rush into buying a smaller home?” You are never rushing into buying a home especially if you have been approved for a mortgage. It is the best, logical step to take in this country, to own a piece of the American Dream, even if it meant starting small, but STARTING, not WAITING. Because the fact of the matter is, properties will appreciate faster than your earnings, so if you were approved today, then be a homeowner today!

As for sellers, it all depends on your goals to sell now or in the Spring. Some owners have pressing reasons to move, and I can certainly help you prepare you to put your property on the market, determine it’s current market value, suggest improvements, and guide you through the whole process of selling, and possibly buying your next home.

See for yourself how my 35 years in Real Estate has helped countless families, first- time homebuyers, seasoned investors, and even former renters. Call me, I am here to help. In the meantime, I would like to take this time and thank all of my past, current and future clients for their loyalty, trust and confidence. I am certainly looking forward to the upcoming holidays, and the end of 2022.