As the pandemic trudges forward, 2021 shattered every housing metric since these stats have been recorded and 2022 is not showing any signs of a slow down. At least not in the short term. There is just too much demand and not enough supply of housing.
As Tom Ruff of the Information Market states:
At the start of every year, there are always conversations about what the next year will have in store and the unknowns that may play a part. There are always many housing predictions ranging from a crash to a boom. It’s called human nature, and this year is no different. Heading into 2022, new conversations emerge around inflation, the potential impact of rising interest rates, and the continued active presence of Wall Street monies and their impact on our market. But that’s what these are, unknowns. The potential rise in interest rates will be a hot topic this year.
But predicting future mortgage rates is a fool’s errand. For the last four years, the expert consensus was for rising interest rates. In each of those years, the interest rates fell, however. Interest rates, inflation, heavy Wall Street activity in our market could impact our housing market in 2022 in subtle or maybe even not so subtle ways. Right now, it’s all just speculation.
What we do know, we begin 2022 with the lowest number of active listings at year’s end on record. And, while we all know the 28% year-over-year increase in the median sales price last year is unsustainable, there is nothing holding back continued price gains in the short term. We know a change is coming, but there are two questions I can’t answer: When will our market moderate? Where will the increase in supply come from? We do know, it isn’t going to moderate tomorrow.
We begin 2022 in the throes of a pandemic with record-setting home sales metrics across the board. Will we end 2022 the same way? Only time will tell.
If you would like to to discuss your real estate needs and how the market may impact those needs, reach out anytime. Call our office at 602-942-4200 and ask for Jaclyn Fouts.