How to Navigate the Current State of the Housing Market in 2022

How to Navigate the Current State of the Housing Market in 2022

As we approach the new year and end of 2022, now is crucial for homeowners to reevaluate the housing market going forward. With the media focused on inflation rates and heightened mortgage prices across the country, chances for prospective buyers and sellers to succeed within the housing market are dwindling, leaving many people anxious about the market’s stability. Despite these challenges, some hope remains on the horizon to benefit from the housing market and achieve a comfortable lifestyle if you know where to look. To best navigate and plan your finances, then, let’s discuss some predictions and evaluations on the current state of the housing market going into 2023.  

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The Current State of the Housing Market 

From housing prices to market inventory to mortgage rates, the constant shifts within the housing market have made it difficult for homebuyers or sellers to regain their footing during 2022. What makes navigating the market much more difficult is how rates shift on a daily basis. In a report published November 14th from Bankrate, the average rate for a 30-year fixed-mortgage was set at 7.08%; as of writing this article, that rate has risen to 7.32%. While such tremendous shifts in mortgage prices will affect families on the market, those most impacted by such shifts are retirees on a fixed income, evidently taking a large portion of their savings.  

Faced with rising rates and costs due to inflation, most experts predict the state of the housing market to decline, particularly in the latter half of 2022 with winter being the worst period to sell. However, based on expert assessments on housing market trends, this pattern of decreased activity is expected for the 4th quarter, with the period between November leading into January being the lowest selling point. This inactivity within the current state of the housing market is unfortunately heightened within the U.S., as fears of a potential recession weigh upon the minds of potential buyers. Coupled with the matter of low inventory in the current housing market—apart from vacation rentals—such rates pose the risk of potentially stagnating the real estate industry to a standstill.  

While these developments would typically expect sellers to lower prices and create a buyer’s market, in reality the current state of the housing market remains a seller’s market due to low inventory and need for buyers to find potential properties. Since sellers maintain the advantage, Forbes experts strongly advise that homebuyers wait for prices to drop or refinance their mortgage loan when lower rates appear to prevent price gauging in such a competitive market.  

Strategies to Navigate the 2022 Housing Market 

Within the time left before 2023, the bleak state of the housing market may present a significant challenge but not a complete block to buyers. As of now, 30-to-15-year fixed mortgage rates average between 6.29—6.95%, with a predicted increase of 8% or more going into 2023. Despite these rates affecting most homeowners’ incomes and savings, certain experts anticipate opportunities for buyers to save money despite increasing mortgages. Here are some ways homebuyers can navigate and adapt to the current housing market: 

Waiting Game 

While buyers are faced with enduring a seller’s market, inflation rates and low inventory have effectively made selling by current market value impossible to match. In the latest report from Goldman Sachs, experts predict a 22% drop in new home sales, a 17% drop in existing sales, and a total housing GDP drop by another 9.2%. In light of these circumstances stalling the sale, sellers may be forced to drop their prices to avoid paying higher mortgage and property fees on a home they no longer want or face a stalled market. As a result, buyers will have the chance to purchase a home below value, and if patient enough to wait for lowered interest and mortgage rates they could save a significant amount of money down the line. With experts predicting a 10% drop in home prices going forward, buyers have significant chance to purchase a quality home without their finances taking the blow.  


While the current state of the housing market may not be favorable, certain circumstances may force buyers to move forward with buying a home at the peak of high prices. However, those with limited or fixed income such as retirees face the anxiety of inflation, recession, mortgage and interest rates of dissolving their retirement funds. Should older buyers need a home now, options remain to supplant their savings and lost income from such high sales rates. In cases where the mortgage or interest rates lower later, homeowners can choose to refinance their loan and take advantage of the new rates and rebuild their lost income from the sale.  

Reverse Mortgages 

Ultimately, the best option for homeowners under the current state of the housing market is to use a reverse mortgage. Typically classified as a home equity loan, users of reverse mortgages can take advantage of higher home prices and gain additional income equivalent to their home’s value. Since these mortgages are fixed to pay the exact home value when residents either move or pass away, no additional interest rates exist to deplete the homeowner’s personal income, leaving them free to use the loan funds to combat inflation rates. This strategy with a reverse mortgage is particularly beneficial to homeowners who want a safe, reliable way to purchase a home due to the uncertainty of the housing market for 2023.  

Secure Your Reverse Mortgage with PCL Financial Group 

Whether you choose to buy in 2022 or remain hopeful for 2023, it's important to carefully strategize the best methods to save money despite the current state of the housing market. Regardless of predictions, secure your financial stability with the assured support of a reverse mortgage. Ready to beat inflation with a reverse mortgage? Contact us at PCL Financial Group today and ensure your housing stability for 2023 today! 

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