Sally English 2022 Real Estate Predictions
1. Mortgage rates are going up. The Fed will likely respond to inflation by raising interest rates. Mortgage rates will respond immediately.
2. More houses are coming on the market in 2022 compared to 2021. The current seller’s market will shift more towards a buyer’s market.
3. Homes priced over $1,000,000 in the Atlanta market will see a dramatic cooling of buyer interest. Wealthy families see economic uncertainty on the horizon and are holding off on big ticket purchases. Economic and pandemic uncertainty will take a toll on the luxury market.
4. Pocket listings are going to be less of a factor as sellers discover the new market requires wide market exposure for a house to achieve best pricing.
5. The best houses will continue to yield premium prices. Cream rises to the top as always.
6. Cash buyers entities may have had their day. Business models will need to be tweaked to stay competitive. Zillow just got out of the house buying business. Industry analysts note huge valuation errors were made when Zillow used their own Zestimate to buy houses direct from homeowners. The Zestimate overvalued the houses and Zillow was forced to sell homes at a loss. Will other iBuyers adapt?
7. House prices will start to decline towards the end of 2022. Opportunities for first time buyers and mom-pop investors will begin to reappear.
8. Experienced and battle-tested real estate agents will have a banner year in 2022 as the need for their services becomes more prevalent. Selling a home will require more skills and negating prowess than just listing it in MLS as many agents did in 2021.
9. A whole bunch of Range Rovers and Mercedes luxury cars with go back to the dealer or bank where they were leased or financed as real estate agents realize the robust market was more responsible for their success than any efforts they individually put into a sale.
Tip of the hat to Brad Inman for inspiration for some of these projections.