Here’s what you can expect from the real estate market in 2022.
Last year was truly a wild ride in real estate. Early in 2021, the market was red-hot, and homes were being snatched up for record prices. Now the market has wound down since the fall, and we’ve taken stock of the situation.
The outlook for our 2022 market is mixed, according to the experts. In 2021, home prices soared by nearly 20%. That did little to increase inventory. In 2022, prices are going to keep going up, but not at the same frantic rate that we’ve been seeing. It’s unclear whether our housing shortage will shore up by then.
“Builders would need to double their output to satisfy demand.”
Redfin found that back in October, ⅓ of homes in over 400 metro areas went under contract within one week of being listed. The disparity between buyer demand and available supply suggests that home prices may surge throughout the 2020s. Builders continue to be limited by worker shortages and cost increases. The rate at which they’re building is well below the threshold needed to close the gap. They’d need to double their output for the next five or six years to satisfy demand.
What does all of this mean? If you’re thinking of selling your home, it’s a fantastic time to list. Buyers are highly motivated by the low inventory and low rates, and you’re sure to catch a great price from buyers who are feeling the pressure.
If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
