Our current real estate market has had some real ups and downs over the last year. A change in the presidency or a switch from Republican to Democrat always seems to make things go a little crazy.
Some markets in certain areas of the country are smoking hot, like Miami, while others are experiencing lackluster performance, like Manhattan. Speculators would just say Manhattan is a buyer’s market, and Miami is absolutely a seller’s market.
Regardless of the terminology, let’s take a look at what’s in store for 2022 for the entire United States.
Will 2022 Improve?
2021 was certainly a tough year for home shoppers. Prices for homes skyrocketed nationwide because of a strain on the supply chain. However, low rates and increased flexibility afforded many first-time home buyers a shot at home ownership.
Many experts are predicting a leveling out of the market in 2022. However, certain trends from this year are expected to continue.
The high demand will continue into the new year because of lower interest rates. Another dynamic that’s increasing demand is the pandemic. Many city slickers are turning to areas that aren’t as densely populated to increase social distancing.
This is leading to many renters to seek home ownership, which is driving the demand sky high. The first part of 2022 will be just as heated as the latter half of this year.
However, experts say to expect the market to normalize sometime around the middle to third quarter of 2022. An increase in construction will help the availability, and some areas will see an increase of supply to keep up with the demand.
Will Home Prices Continue to Climb?
Many buyers are looking for some sign of relief in regard to the skyrocketing home prices of 2021. You can expect the climb to decrease to somewhere around 5%, which will help ease some of the pain from the inflated prices. While things will normalize and even out, don’t expect things to return to normal anytime soon.
The demand will still be much higher than normal, which will prevent home prices from falling anytime soon. If you’re looking to make a profit off real estate, 2022 won’t be the year for it unless you already own property.
Stick it out for another couple of years before you try your hand into flipping. There just isn’t enough room in this market for newcomers to survive.
The Realty Group Team is on top of the real estate market and can help you successfully navigate through it whether you are buying or selling a home. Contact us to get started!