Real Estate Predictions for 2022
Well here we are in a hurry for the end of another weird and wacky year. I’ve answered the “So, how’s the market doing?” question a bazillion times this year and always with the same answers:
“Yes, Margaret the market is still hot and remains a seller’s one!”
”Yes, John lots of buyers, but scarce inventory.”
”I’m sorry, Paige, but you did just lose your 11th offer in a week, you wanna try for 12?”
”Yes, Bill, New Yorkers and Californians are richer than you and have a wad of cash in their vests.”
“Yes, Trina, if you want this house you have to bid xyz over and waive all inspections.”
From Keeping Current Matters
It’s been brutal to say the least. I’m not complaining, I mean I did very well during Covid considering and my buyers did find their dream homes, but I do feel for all my first time home buyers. That’s why I advise to start planning ahead if you want to find home.
What does it look like in 2022? Pretty much the same. We are starting see the rise in mortgage rates and a competitive job market which will only lead to higher demand. Additionally, housing prices will increase by as much as 3%. I foresee an uptick in gentrification in metro areas and still more millenials moving to suburban areas. Rent prices are also continuing to rise making demand for home ownership more desirable amongst the younger generations. I generally think we’ll be seeing more of the same with demand high, inventory low, and more big city transplants.
2022 will see the slow rise of housing prices and even through the slower, cooler months we are seeing lots of activity. If you own land, I suggest getting the most out of it— build a smaller property to provide short term rental or sell a parcel you can spare. As I’ve preached before, Winter is a favorable month to buy due to a decrease in competition while having the ability to take your time while searching for a home. So no Karen, the housing market isn’t slowing down one bit.
If you’d like to know more about thriving areas or information on the value of your home, please feel free to contact me!