March 1: Market Update (Getting Ready for the Spring Season)
As the infamously busy West Michigan spring real estate season inches closer, the question on every potential homebuyer’s mind is, “What’s the housing market going to do?” The last two years produced record housing prices and the lowest interest rates mortgage experts saw in decades. This led to an unbalanced, wild housing market with significantly more buyers than inventory. New homebuyers found themselves left in the dust while home prices skyrocketed and supply chain issues affected everything from renovation costs to new home builds.
Do we have another intense year ahead of us? What can we expect in terms of interest rates, inventory, and home prices? Join Eastbrook Homes as we dive into 2022’s housing market forecasts and detail a few creative solutions to ensure our homebuyers don’t get left behind.
The Hard News: A Professional’s Prediction
Eastbrook Homes recently sat down with one of our preferred lenders, Lake Michigan Credit Union, to discuss the 2022 housing market. They predict that mortgage interest rates will rise by almost an entire percentage point from 3.1% to 4.0% for conventional 30-year, fixed-rate loans, by the end of 2022.
Even with the increase, mortgage rates remain low enough to encourage strong interest from a number of homebuyer demographics, including first-time, millennial homebuyers and experienced homebuyers looking for more space. Experts agree home prices will continue to rise, but at a more modest pace than the last two years and with a slight increase in inventory.
We can also expect continued delays and supply shortages due to the lingering effects of Covid-19. Lumber prices are on the rise again and unstable production lines continue to put massive pressure on industrial shipping ports. This means everything from exterior home finishes to kitchen fixtures will likely incur price increases and timeline setbacks.
The Great News: You Have Options With Eastbrook
It may initially sound like 2022 will be only slightly-less chaotic than the last two years, but the great news is, you have options! Eastbrook Homes is a premier home builder that provides affordable, customizable homes for families throughout West Michigan and the Greater Lansing area. Unable to find the house you love in your price range and ideal location? Consider building with Eastbrook!
Increasing lumber prices? No problem! With our price-locking Eastbrook Guarantee, you can avoid fluctuating material costs and protect your budget for the duration of your build (Please read the full Eastbrook Guarantee for terms and conditions).
Fluctuating interest rates? We’ve got you covered! Choose our Financing First loan option and lock in your interest rate sooner than later!
Unpredictable delays and unstable timelines? Eastbrook gets it! We form lifelong relationships with our homebuyers and value transparency. That’s why we maintain close communication with local and national vendors to ensure you’re looped in throughout the entire home-building process.
Think building is too complicated or pricey? Think again! Eastbrook maintains a library of resources to walk you through every step of the home building process. From videos to home tours, our expert Sales Agents can arm you with the tools you need to make your dream home a reality.
Avoid housing market pitfalls this year by building with Eastbrook Homes. With our dedicated team of regionally-renowned construction and sales professionals, a customizable, affordable new home is a smart way to get what you need without battling it out over the negotiation table. Our homes offer incredible features like Smart Home technology, name-brand fixtures, and community amenities that fit every lifestyle. Connect with us here to learn more about how Eastbrook Homes is the perfect solution for your home buying needs this year.