Despite the winter months typically being known to be slower for real estate, the housing market was actually hot in the first month of 2022. While the home purchase demand remained steady, the inventory was low and prices crept up, so what can we expect for February?

Keep reading to learn more!

One of the biggest takeaways from January is that the rates are on the rise. According to Federal Home Loan Mortgage Corporation, the average 30-year loan rate now sits at 3.56%, which is well above the sub -3% rates we saw a few months ago along a 77-basis-point jump over the time last year. With a tighter monetary policy taking place over the next few months, experts project that mortgage rates will continue to climb throughout 2022.

It's not just that buying a property that’s gotten more expensive. Rents are on a tear lately, too. According to Redfin, rents were up 14% in December, which is the biggest monthly jump in two years. The average monthly rent now lies right under $1,800 – about $300 more than the typical mortgage payment. It sounds a bit insane, but owning a home – despite the recent price trends, is actually more affordable than renting in 58% of U.S. markets, according to an ATTOM Data Solutions Report.

As Crypto is becoming more common in the real estate world, almost 12% of first-time homebuyers last year sold some type of cryptocurrency to make their down payment. That’s up from less than 5% pre-pandemic, according to redfin data. That being said, there’s crypto mortgage on the market too. Milo, a program lets you leverage your crypto holdings (rather than sell them off) to buy a home or invest in real estate.

According to another report from ATTOM Data Solutions, foreclosures were down 8% in December from the month before, so if you were hoping a slew of low-cost distressed properties would hit the market once the remaining 800,000 plus homeowners come off forbearance in the future, don’t hold your breath…despite any predictions, there might be an uptick in foreclosures as these pandemic plans expire.

Ultimately know your market. Real estate is a local game, so these trends may or may not ring true for your specific market, but it will definitely help you be aware. Make sure you speak to a local real estate agent or mortgage broker for on the ground trends in your area.