Here are my best predictions for the 2022 real estate market.
As we get ready to turn the page on 2021, it’s pretty natural to ask, “What comes next?” Our market has been wild this year, and it’s impossible to predict the future with 100% accuracy, but today I’ll be giving it my best shot.
My first prediction is that our seller’s market will transition into a buyer’s market around June or July of 2022. Why is that? I think we’ll see a combination of more inventory and fewer buyers. The reason why I think there will be fewer buyers is that interest rates are expected to go up. The Federal Reserve has been hinting for a while that they will slowly begin increasing interest rates soon. Higher interest rates mean more expensive mortgages, so we likely won’t see the crazy buyer demand that’s become normal over the last 18 months.
If you’re a buyer, I recommend you get into the market now and take advantage of our low interest rates while they last. As for sellers, you should sell your home as soon as possible. We’re already beginning to see signs of the market slowing down, and it’s only going to get slower from here.
“As interest rates go up, buyer demand will go down. ”
I also predict that property values will increase. We’ve already seen a bit of this with the county’s home evaluations. People are receiving their new values and getting sticker shock from how much they’ve increased. This doesn’t necessarily mean your property taxes will increase, but they are based on appraisal values. You should try to fight your appraisal, but all homes have appreciated since COVID hit. It will be an uphill battle, but it’s worth a shot.
If you need help fighting your appraised value or if you have any other questions, please call or email me. I would love to help.
