2022 Market Predictions

Lombardo Home Group August 16, 2022

HowsTheMarket

Happy New Year! It’s time to talk about what the markets are projected to do in 2022! A few weeks ago, I attended an annual conference where we discussed that. What do the national economists say will occur in the housing market? In short – there is no bubble and no crash coming. It will follow 2021 trends and continue to climb in home values – but, it is expected to normalize. The biggest misconception is that “normalize” does not mean a drop in prices in these strong market conditions.

We have been experiencing a 15 year high on home values and the Atlanta market overall is up 16-18% year over year. On a more local scale, we have been experiencing a surge in home value since 2019. In 2020 & 2021 we experienced banner growth years and we were long overdue for that UPWARD market correction. It came in strong spikes & surges – but, these values are here to stay.

COVID has changed where and how we work. Many homeowners no longer need to live by their office and are moving almost anywhere they desire. More than 45 Million millennials are projected to be buying their first homes this year, young buyers still need more space as their family grows & empty nesters are still downsizing. The second home & investment home market has taken the largest hit with higher rates and higher fees to purchase.

One of the best indicators of the market is interest rates. In January 2021, mortgage rates were in the low 2% range and dipped into the high 1% range by mid-year. (I actually refinanced my own home last year for 1.9% for 15 years – just unbelievable!) Three rates hikes are expected this year and will rise and settle around 3.6% – 3.7%. In short, when the rates rise and inventory normalizes, the intense multiple offer scenarios will begin to ease down.

I am a constant student of the market and love to talk about all things real estate. Give me a call at 678-478-7868 for source information, if you are curious about your own home value or are curious about “best timing” for your own personal financial goals.