Here are my predictions for our real estate market this year.
I wanted to start by saying happy holidays and happy New Year! Here in central New York, it seems like winter has finally arrived. It felt like it would never get cold, but it’s quite nippy outside. Despite that, the real estate market keeps on moving. We sell properties 12 months out of the year in New York. People’s personal situations keep the market moving constantly.
Many of us, myself included, watch national news about the real estate market. Some people automatically assume that that news applies to where they are. All real estate is local. You have to look at your local marketplace, and sometimes, you even have to break it down from neighborhood to neighborhood.
In a general sense, we’ve been mirroring the national market here in New York, so let’s go over what we can expect from our market in 2022. We’re coming off unprecedented times with record appreciation, activity, and low-inventory. Many of us thought we would see a housing recession because of the pandemic, but we saw the exact opposite.
In 2022, we’re still looking at a low inventory situation. Prices are still expected to increase, but they should rise slower than they did in 2021. Inventory is still low, but we expect it to increase throughout the year.
Working from home is a huge factor in the marketplace. Home offices are still in high demand, and people are focusing on adding amenities to their homes.
We have a lot of millennials entering the marketplace, and on top of that, a lot of buyers who were sitting on the sidelines may reenter the market. There will be a lot of demand, but some changes to financing may counterbalance that. Interest rates are broadly predicted to increase, and the Fed also has plans to taper their bond purchases.
New construction is another factor this year. The supply chain issues are not resolved, which has led to higher construction costs. Although, builders are optimistic that those supply chain issues will start to ease, and if they do, we might see some home price stabilization.
The outlook is good for 2022. If you’re a seller, there will be a lot of opportunities. If you’re a buyer, our market is more affordable than most, and we have a great lifestyle. I’m all about central New York. If you have any questions or ideas for a video, call or email me. I’d love to chat with you.