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What Will The 2022 Housing Market Look Like? Your Guess Is As Good As Mine

Posted by Sami Thalji | Nov 16, 2021

2021 was a great year for sellers but a tough year for buyers. Experts estimate that as many as 74% of all homes sold in 2021 entertained multiple offers. Now, experts believe that the rate of price growth will slow in 2022. We have seen prediction models that believe growth will occur at a rate as high as 14% to as low as 2% over the next 12 months. There are two major unknowns that lead to such different perspectives on the future. First, the uncertainty of interest rates in 2022 will have a major impact on the market. Conventional wisdom says that interest rates must rise to some extent to offset inflationary pressures. When, if, and how much interest rates rise will impact home prices. The higher rates go, the fewer buyers will be in the market. The fewer buyers in the market, the more the inventory, the lower the price gains will be. Second, will supply chain shortages hold back new building? The continued labor shortages and supply chain shortages in areas closely related to housing could lead to fewer new homes in 2022. Fewer new homes means less supply, less supply means prices will continue to rise. The reality is that there are a number of conflicting signals all over the housing market. Supply chain shortages should lead to continued rise in prices. But, rising interest rates should cool the market. But, how can a market sustain when knock down old houses are selling in some of the worst neighborhoods for astronomical rates? In 20 years in real estate I have never seen a more complicated housing market. Anyone that tells you they know what's coming next is lying to you. Just be careful with your money and ask a lot of questions before making any decisions when it comes to real estate. Our offices offer a full range of services. Call us before you call a realtor.

About the Author

Sami Thalji

Sami Thalji is a native Floridian, born in Clearwater and raised in St. Petersburg, Florida. Sami graduated from Osceola High School in Seminole, Florida before attending and receiving both his Bachelor of Science and Juris Doctor from the University of Florida in Ga...


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