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The Pros and Cons of Waiting Out the Hot Housing Market



The pandemic put only a temporary damper on the housing market, as the market rebounded robustly, hotter than ever, particularly in 2021. As we’ve rolled into 2022, the market is starting to simmer down just a little but not much. The median home price in January 2022 was $350,300, as compared to $356,700 from August 2021, according to the National Association of Realtors. And the inventory of unsold homes at the end of December 2021 dropped to an all-time low of 860,000.


Even the rebound is no longer quite as dramatic as it looked in 2021, largely because inventory for sale dropped by 40% since the pandemic started and never quite came back to normal levels, said Bill Samuel, a real estate investor with Blue Ladder Development. “Demand only slowed down for a couple of months during the quarantine period, and then came back to normal,” he said. However, supply hasn’t quite caught up, meaning there are more buyers than sellers — part of what is driving the market right now.


It’s easy to feel the pressure to buy when houses are getting snapped up all around you, but does that mean you should jump or is it better to wait out a hot housing market and see if it calms down? Experts weigh in on the pros and cons of waiting it out.

Don’t Let FOMO Drive You

Just because everyone is buying a house, doesn’t mean you should be too, said Donald Olhausen Jr., owner of We Buy Houses in San Diego. “I have seen many people force bad decisions because they have fear of missing out (FOMO). Forcing a bad deal will not rectify itself because there were no other options or because you felt stuck. Being patient in this market is hard, but overpaying for a faulty property will ultimately lead to more regret.”


There Are Markets Within Markets

There is not one universal housing market, but rather “many smaller micro-markets,” said Michael Shapot, Esq., licensed associate real estate broker. “Some of those submarkets are ‘hot, less hot or more hot’ and they may change week by week, or month by month.”

Elisa Uribe, a realtor with Wells and Bennett Realtors added that “real estate is hyper-local,” so consider the source. “You can withstand any market changes if you don’t have to move in a specific time frame.”

2022 Is a Slightly Better Time To Buy

Real estate experts like Marina Vaamonde, the founder of PropertyCashin, said that 2022 would be a better time to buy because, “The demand for residential real estate is still vastly overshadowing the inventory.”

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