Here are my predictions for the future of 2022’s real estate market.
What does 2022 have in store for our real estate market? No one has a crystal ball, but we can take a look at current trends to make some educated guesses.
The first thing we need to talk about is price. In 2021, New Hampshire and Massachusetts homes appreciated up to 20%. While home prices will most likely increase in 2022, they probably won’t increase at the same rate as last year. For buyers, this means you should hop in the market sooner rather than later. You don’t want to sit out of the market so long that your dream home becomes unaffordable.
My second prediction is that interest rates will increase in 2022. We don’t know exactly where they’ll end up, but it’s safe to assume that they will rise above 3.5% by the end of the year. For buyers, my advice remains the same: Get into the market now so that you don’t miss out on low rates.
My third prediction is that inventory will remain tight. With everything happening, the underlying factors behind our inventory shortage don’t look like they’re going anywhere. This means the market will still be difficult for buyers.
My fourth prediction is that buyer demand will remain strong. My team still receives calls from buyers every day who are having trouble finding a good home. Many buyers who have been sitting on the sidelines will probably jump back into the market during the spring, and we’ll see plenty of new buyers as well.
If you’re a buyer, it isn’t all bad news. More new construction properties are coming to market in our area, so they should help alleviate our supply shortage. Unfortunately, supplies are so expensive that these homes will probably be on the pricier side.
Next, I expect inflation to be a factor not just in real estate but in every sector of our economy. The Federal Reserve is facing a huge challenge right now. They need to increase interest rates to combat inflation, but they can’t raise them too quickly or else they risk tanking the economy. Due to this, rates probably won’t keep up with inflation, and everything will get more expensive.
Finally, I expect to see more jobs in our market. I always like to end on good news, and this is a strong sign for our economy and real estate market.
If you have any questions, please feel free to call or email me. I would love to discuss today’s topic or anything else with you!