Why it's Hard to Buy a House in 2022

Ask anyone you know trying to buy a house right now and you will get the same answer: it is nearly impossible to get what you are looking for.

Sellers, on the other hand, have never been happier – they are attracting bids, often above asking price, within days, if not hours, of listing their properties.

But why has housing suddenly become such a sought-after thing?

It is good old-fashioned market forces of supply and demand – the number of wannabe buyers is simply far outstripping the number of homes coming onto the market.

Pent-up demand after two years of pandemic lockdown has seen a surge of people catching up on earlier plans to move that had suddenly been put on hold. 

People have changed jobs, and the rapid switch to at-home working has given many the opportunity to keep their job but relocate to somewhere they prefer to live rather than have to live because of the daily commute to the office.

During the pandemic, many people actually managed to save money for deposits due to a rapid cut-back in expenditure and the rounds of economic stimulus.

Couple this with perhaps the end of the decade of free money due to hyper-low interest rates since the 2008 financial crash, and some buyers are wanting to lock into a mortgage at lower rates now as they anticipate higher borrowing costs in the coming months and years.

All that is just on the demand side – on the supply side, the housing market is experiencing a scarcity of new builds, with many fewer homes than normal under construction. This also has its roots in the pandemic – skilled labor is currently hard to come by.

Further, the multiple fractures in the international supply chains for building materials – especially lumber - have meant essential goods are either not available, experiencing extensive delays in arriving, or the prices have shot up sharply, leading some building firms to hold off on commissioning new construction.

Put the two sides of the equation together and it means good news for sellers, but a bad hit in the pocket for buyers as bidding wars are not uncommon with competing parties racing to secure properties, and average house prices continuing to rise.

So what is a would-be buyer to do? Firstly, take a deep breath and remember what the goal is – and how much you are prepared and able to pay for it.

Get your finances in order and numbers together – get pre-approved for a mortgage so you are in a position to move rapidly when it comes to making an offer. Sellers inundated with good offers are likely to take a slightly lower offer if the money is already in place just for the benefits of a quick and smooth transaction. Work with your lender of choice now to get things together.

And finally – but crucially – have an expert work with you and for you. Do not try and do this alone, especially during the current market. This is where using an agent is essential to make sure you have good guidance and professional assistance with you the whole way. Here at Key Realty NEO, our agents are highly skilled and knowledgeable about our markets and are ready and waiting to help you into the house of your dreams.