fbpx
Connect with us

Real Estate Disruptors

Buying Real Estate? Expert Andrew Shader Thinks You Should Get Ready

In 2021, potential home buyers faced significant challenges due to a lack of housing inventory and a lot of competition to purchase homes. Buyers were everywhere, and bidding wars were not uncommon as people navigated a tough seller’s market. Going into 2022, Andrew Shader believes we will experience some relief, but other factors could also impact the real estate market.

Here are a few expectations for buyers and sellers to consider.

  1. Interest Rates Will Continue to Rise

The Federal Reserve cut interest rates significantly in 2021 to assist with the impacts of the pandemic on the economy. However, we are now beginning to see unprecedented inflation, leading the Fed to consider increasing interest rates. In January, the Fed signaled that the market could anticipate higher interest rates in 2022.

Rates were as low as 3% during 2020. Current interest rates are averaging between 3.1 and 3.3%. As we move forward, Andrew Shader believes we can expect rates to be at 3.7% by the end of the year. While those rates are certainly higher than in 2020, they are still lower than in 2019. At that time, rates reached a high of 5%.

As interest rates creep up, potential buyers need to take advantage of the market lending rates before lending costs make purchasing a home unaffordable.

  1. Real Estate Inventory Will Increase

The year 2021 saw a reduction in available homes on the market. Many people chose to hold onto their properties rather than potentially sell them due to uncertainty surrounding the pandemic. As the severity of the pandemic continues to decrease and more treatments and vaccines for COVID-19 become available, people will be willing to make significant life changes. Thus, we will see more properties come available for purchase.

As inventory increases, fewer bidding wars will flare up between potential buyers who will have more choice when purchasing a home. This will lead to a smaller, slower rise in housing prices throughout the year than was experienced in 2020. However, as inventory is not expected to increase to 2019 levels, the market will still be in the seller’s favor.

Over the coming winter and spring months, we will likely see more homes come available, allowing a more balanced market between potential buyers and sellers. For additional perspective, the current supply of housing inventory is sold within an average of 2.4 months. A 6-month supply of housing inventory is considered ideal for ensuring a balance between buyers and sellers.

 

About Real Estate Expert Andrew Shader

Andrew Shader is a real estate investor, developer, and entrepreneur based out of Fort Lauderdale. Shader started as an entrepreneur in the insurance industry before discovering his real estate passion: finding scalability in any vertical. Andrew’s real estate strategy specializes in finding value-added properties and increasing their property value by upwards of 60% — without needing to rely on future appreciation.

 

 

 

Jacob Maslow is a Columnist at Disrupt Magazine. Based in the Middle East, he specializes in Journalism. He is the founder and editor of several news sites including Legal Scoops and Streetwise Journal.

Advertisement defi

Join Disrupt Magazine

defi
Become A Disrupt Contributor

Most Disruptive

tezos and NFT tezos and NFT
NFT4 weeks ago

Beginners guide to NFTs: What are non-fungible tokens?

You have probably heard the word NFT hundreds of times so far. At first glance, you thought it only had...

Sports + Gaming2 months ago

What Motorcycles Are Good For Long Trips?

Motorcycles are all about freedom. But the question is: how often do we really go out there and enjoy the...

Executive Voice2 months ago

3 Ways Maternal Instincts Give Women In Leadership An Advantage

As the landscape of gender roles continues to be redefined, these 3 experts agree that their maternal instincts provide an...

Executive Voice3 months ago

The Queen of Title: How Powerplayer Rachel Luna is Disrupting the Title Industry Through a Modern Approach

Rachel Luna has made quite the name for herself within Texas’s title real estate business as the Title Queen and...

Executive Voice3 months ago

Nancy Almodovar: The Latina CEO Who is Disrupting the Status Quo of the Luxury Real Estate Market

It comes as no surprise that Nancy Almodovar, the CEO and founder of Nan and Company Properties, is one of...

Business3 months ago

How To Nurture Talent Within Your Business

Your business can only succeed with talented workers on the payroll. Luck and even strong economic conditions will only get...

NFT4 months ago

Solana’s value plummets below $98 due to a Wormhole Exploit

Many people thought blockchain technology was robust, secure, and virtually “unhackable.” However, the crypto world has faced several hacking incidents...

NFT4 months ago

Polly Kole, The Beauty With Gifted Hands Tycoon Of NFT Sculptures

In a society full of stereotypes, people clinging to appearance and disregarding one’s achievements is the magnificent Polly Kole stunning...

gold and black round emblem gold and black round emblem
Cryptocurrency5 months ago

Bitcoin’s Volatility Explained

Since cryptocurrency was introduced in 2009, it has become a very controversial subject for both critics and supporters. One of...

News5 months ago

Spider Man; No Way Home’, Crushes Box Office Estimates Generating A Mammoth $253 Million In North America.

After only 3 days in the cinemas, the latest and last Spidey outing disrupted the international market as the highest-grossing...

Trending

Copyright © 2020 Disrupt ™ Magazine - Disrupt is a Minority Owned Privately Held Company

Disrupt ™ is the voice of Latino entrepreneurs around the world. We are part of a global movement to increase diversity in the technology industry and we are focused on using entrepreneurship to grow new economies in underserved communities around the world. We enable millennials to become what they want to become in life by learning new skills and leveraging the power of the digital economy. We are living proof that all you need to succeed in this new economy is a landing page and a dream. Disrupt tells the stories of the world top entrepreneurs, developers, creators, and digital marketers and help empower them to teach others the skills they used to grow their careers, chase their passions and create financial freedom for themselves, their families, and their lives, all while living out their true purpose. We recognize the fact that most young people are opting to skip college in exchange for entrepreneurship and real-life experience. This Podcast was designed to give them a taste of that.