2022 Market Trends
In 2021, our market saw one of the biggest years of appreciation, ranging between 10% to 19%. To put this into perspective, let’s say your home was priced at $700,000. This means that the value of your home can increase by up to $133,000!
Our inventory is also at an all-time low, dropping to a rate of 23% compared to last year. We are currently running at 2 weeks’ worth of inventory, so it will more likely be the same as last year on how quickly you have to be ready to submit an offer and be ready to compete against multiple offers when purchasing a property.
Inflation also climbed to 7% in the last month of 2021. Regardless, there were more sales last year than ever before! Over 6 million houses were sold on the market and properties were selling quickly, like hotcakes, since there is a high demand from buyers. This is because housing affordability is reasonable due to high income and low interest rates.
Meanwhile, 65.3% of the US population currently own a home while 33% of people between ages 18 to 34 are still living with their parents.
Here are a few key things to watch out for in 2022:
- Interest rates are constantly on the rise, and they can potentially hit up to 4% by February. As of last week, we had clients getting quotes around 3.75%. This can change the buying power for some folks, because for every 1% interest rate increase, it increases the monthly payment around $250.
- Our buyer activity is higher than 2019, pre-Covid, despite having low inventory. This only means one thing: high buyer activity = another crazy year!
- On average, homeowners have around $300,000 of equity in their property. This means that they have the chance to use this money to tap into investing in real estate, improving their property, or investing in other options. Don’t miss the chance to grab this huge opportunity! Contact us to find out more. We love to help our clients manage their wealth through real estate!