What’s up with the market in 2022?
“So…2022 is here. Is it a good time to buy or is it better to sell?”
The answer is yes.
The 2022 real estate market will continue to be a strong one for sellers although things will even out a little bit for buyers. Keeping Current Matters (one of my go-to sources for real estate news) polled a series of real estate experts that is what they came away with.
The two biggest issues in 2022 will continue to be lack of inventory and affordability. As long as there are so many buyers with so little inventory, we just won’t be able to build our way out of the current inventory mess that we’re in.
Looking Back on 2021
But before we leave 2021, there are several stories worth paying attention to from last year aside from Zillow’s iBuyer model crashing and burning. For me, one of the biggest things to come up is the rise of the “power buyer.” Giving move up/move down buyers the opportunity (i.e. liquidity) to compete is potentially a game changer. Will more traditional lenders join in the fun? Who knows? What are the unintended consequences of a robust power buyer market? And by that, I mean how many buyers on the margins (working class families, people of color, etc.) will this latest trend knock out of being homeowners going forward?
There were several seminars and policy conferences about the dismal state of homeownership among non-white families/individuals in the country. This gap only appears to be widening. There has been successful handwringing by the federal and state governments over what to do, and while non-profit organizations like the Urban Institute are in favor of using non-traditional measurements (like rental history) to build a better borrower portfolio, so far those who are responsible for these policy changes, are balking. It remains to be seen whether or not politicos will continue platitudes or if they’ll make an effort to effect any sort of real change.
Last up on the real estate front is the crazy housing prices from last fall into the spring. It’s quite amazing to see 20+% price increases year-over-year and hopefully we won’t see this activity again. It’s unhealthy for the market.
p.s. As you know, my business operates on providing superior customer service and referrals are my lifeline. If you happen to know anyone who is thinking of buying or selling within the region, I would appreciate a referral.