Wednesday, December 22, 2021 / by Ryan Nager
Here are my four predictions for next year’s real estate market.
2021 has been a banner year for real estate. We've seen high prices like never before and so I’m getting a lot of questions right now about what can be expected in 2022. Today I'll share four predictions that I have for next year:
1. 2022 will be more buyer-friendly. Over the last six months, we’ve started to see signs of the market starting to shift. We will likely continue to see the market balance out more next year. It won’t become a buyer's market, but it should be more buyer-friendly.
2. Expect to see more inventory. January is typically one of our heaviest months for new inventory and it can be a great time to start looking again. We will likely see more options for most buyers.
3. Don’t expect prices to fall. They're not going to go up as much as they did this year, but nothing in the data is telling us that prices are going to decrease. Most experts expect steady appreciation in 2022.
4. Interest rates will rise. They’ll rise about 25% to 30% over 12 months and that can make affordability become more challenging. My recommendation to anyone that is thinking about getting into the market is to talk to a lender right now and see what options you have.
If you have any questions, don’t hesitate to reach out. Have a great holiday season and I look forward to hearing from you.