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207-338-0009

Real Estate in 2022

Real Estate in 2022

A  Snap Shot of Real Estate for 2022

Real estate was on everyone’s mind and wallet in 2021. By all accounts, it was a record breaking, successful year. Homes flew off the shelf. Prices exploded. The big question is what is on tap for 2022? Here are the key considerations that will likely impact the market going forward.

Inventory:

           A lack of inventory will continue to plague the markets & frustrate buyers

          Inventory levels will help hold up prices to the seller’s advantage

           Real Estate Agencies will need to rebuild inventories                  

Home prices:

           Are forecasted to appreciate in the 5%-8% range

           There is NO indication that prices will fall back

           Added equity in homes will protect homeowners from a “crash” in values

           Demand will be stable providing further support for current home values

           High valuations will affect affordability at some levels

The Federal Reserve:

           Inflation has gotten the Fed’s attention  

           It is projected that they will raise interest rates 3 times in the year

           Mortgage rates will follow increasing to 3.5% to 4%

          The debt-to-income level ratio to secure a mortgage will be a higher hurdle    

Inflation:

           Is something we will live with for this year and possibly beyond?

           The cost of new home construction, materials & labor will climb

           Inflation will touch everything “house” related…                                      

The Market:

          High-end properties will sell as normal affected only by inventory and selection

          Vacation and second home markets will stay in the game

          Trade-up---residential mid-market buyers are inclined to move to the sideline

          Boomers are leaning toward aging in place  

          Millennials (26-42) are buying homes and will drive the market for years to come 

          First time buyers will feel the pinch of rising interest rates & rising prices

          The market is still to the advantage of sellers

           Buyers are “frustrated” as houses go under contract before they can act

           Buyers equally frustrated by competition---Cash is King!     

           Over asking price & multiple offers will cool opening the door to negotiations

           The pace of the feeding frenzy will slow   

Lastly, Anyone's Guess:

          Our “pandemic lifestyle”

          Confusion with hybrid-remote work models and policies

           Labor shortages---Supply chain issues--- Disruptions   

           Politics & Geo-political climates

Whether you are buying or selling our best recommendation is to put Camden Hills Realty to work for you.