What in the world is going on with the real estate market? Well, maybe we should ask, what in Buffalo, MN is going on with the real estate market? In our 2022 kickoff real estate market video we
Real Estate expectations for 2022
Dated: January 19 2022
What in the world is going on with the real estate market? Well, maybe we should ask, what in Buffalo, MN is going on with the real estate market? In our 2022 kickoff real estate market video we discuss what we expect for 2022. Here are a few quick bullet points:
1. What to expect for interest rates
2. What can we expect for home appreciation
3. Market Competitiveness
4. The “foreclosure boom”
The most common question we’ve been getting in regards to the real estate market is “What should we expect for 2022?” Typically our response is something along the lines of, “What do you want to know?” We get asked these questions, but typically the questions are a little broad. So, we narrowed the questions down to 4 trends we’ve been hearing about the most lately.
To quickly summarize our latest episode, we expect interest rates to rise. The feds have already said that rates will rise and every article discusses us ending up somewhere around 3.6-3.75% interest rates for your average conventional mortgage. So maybe just getting high enough to slow the market down a little bit? We’ll see.
We expect home appreciation to increase by approximately 5% this year. There would have to be a huge, unknown demand for homes that no one is accounting for if we were to see the same growth as last year. So, all in all, don’t expect to gain the same equity in your home as you did last year! Which brings up the next point where we discuss the market competitiveness. Due to what we expect from the last point, that would imply that we will see less market competitiveness amongst buyers. Based on everything that we read in preparing for our discussion, we don’t expect to see a market consistently seeing 47 offers, but more like 7 offers.
And then last, regarding the “foreclosure boom” that everyone thought was going to happen…. It’s not going to happen. This is different than 2009-2012ish. People didn’t have equity in their homes during that time. Now we’ve just gone through some of the biggest housing equity gains in history. If anyone is in trouble with their mortgage, they can just sell their home and make money. And the banks aren’t stupid either. They know if they take possession of a home that they can sell it to make the money back that they need. So if you’re sitting around waiting for your chance to catch a downturn in the market when a whole bunch of cheap foreclosures come up, keep dreaming, because they aren’t coming like they did before.
Please contact our team if you would like to talk to us about any of these topics, or anything else in the real estate world!
Video link: https://www.youtube.com/watch?v=4dt-v2hrncs