I'm talking about Privately selling your home and what that means - and why you should (or shouldn't) do it.Hi I'm Jennifer Re of Jennifer Re Homes and Keller Williams.First, what does selling your
Top 5 Real Estate Market Predictions for 2022
Dated: January 11 2022
In this episode of ReTV, I'm talking about the top 5 Predictions of the Real Estate Housing Market for 2022! Will it crash? Will it be the same as 2021? Will it be worse?
Hi I'm Jennifer Re with Jennifer Re Homes and Keller Williams. And while The housing market is a complicated machine with close connections to the U.S. economy. Changes in one will affect the other, and vice versa. Because these two entities are connected so closely, even the slightest shift can affect home buyers and sellers. Looking for patterns and understanding the relationships between different economic factors can help real estate professionals and economists anticipate where the housing market may go next. Let's take a quick look back on 2021 first.
If you were trying to buy a house in 2021 you know just how crazy it was!
Low supply and high demand created a strong seller’s market, which led to higher prices. Even though houses cost more, bidding wars broke out as buyers tried to secure a residence. High competition meant homes were selling in a matter of days or even hours, giving sellers the upper hand and reducing room for any negotiation from buyers. However, homebuyers kept engaging with the market since lower mortgage rates and remote work made homeownership a possibility for many. So what do we think 2022 will look like? Experts agree that the housing market will continue to favor sellers for some time, possibly for years, but with slower growth in home prices and slowed down inflation. The large discrepancy between supply and demand for new homes will take a while to balance out, and the supply chain will need to work smoothly for some time before things can settle.
The 1st Prediction of 2022 is Market Competition
Although many other factors also create a seller’s market, the power dynamic between supply and demand is the main predictor of how things will turn out. Except in extreme cases, buyers and sellers can reach their goals regardless of who has the upper hand. However, sellers will get a better deal overall.
Prediction #2 - Interest Rates
Another factor predicted to cause major shifts moving forward is the adjustment of interest rates by the Federal Reserve. Higher mortgage rates mean buyers will have to pay more for homes, which could slow down the housing boom by discouraging some people. However, investors will benefit from these higher rates since they’ll be making back larger amounts of money from banks and homeowners.
Prediction #3 - Financial Security
After the pandemic caused many people to lose their jobs and experience financial insecurity, the government and banks responded with loan forbearance programs to protect individuals from being evicted or going into foreclosure. However, most of these will come to an end in early 2022, so experts like National Association of REALTORS® Chief Economist Dr. Lawrence Yun predict some stimulation to the housing market as more homes come up for sale.
Prediction #4 - Consumer Confidence
When people are optimistic about the future, they spend more and invest in long-term goals like houses. The early months of the pandemic caused a lot of uncertainty about the future and made many people question their goals and financial stability. However, according to CEO of Realty ONE Group, consumer confidence and investments are growing as the pandemic era evolves. Looking forward, people will likely continue to move out of high-populated areas because they’re seeking more space
Prediction #5 - Supply and Demand
Experts expect demand for homes to outpace supply for some time, so high competition and rising prices will continue to factor into buyers’ decisions. Rising interest rates may deter some people from buying, which could tone down high competition rates. However, as incomes increase and employment rates move back to normal levels, the market should begin to balance out. And with the cost of lumber prices stabilizing now, this will make building new homes a more affordable option for many again. Many people are enjoying with the increased flexibility, lack of commute, and control over their work environment. The Zoom craze may eventually calm down, but working from home will continue to impact real estate in unprecedented ways for years to come.
We can all agree the housing market has been dynamic over the last two years. The market’s close connection with the economy offers hope we enter 2022. Over time, supply and demand will balance out, and the tides will eventually turn to favor buyers again in the future. In the meantime, sellers can make the most of this time in history.
If you have any comment, questions, concerns please feel free to shoot me over a text, a DM, an email or comment below.
Thanks for watching RETV!
After 17 years in the Residential Mortgage Industry, I decided to pursue my passion of real estate and join Keller Williams Atlanta North. Real Estate has been a passion for as long as I can remember....
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