Happy New Year! I hope you’re off to a great start this year already and holding firm to your goals and resolutions, whatever they may be.
I wanted to share with you what the real estate market is looking like now and where it’s headed for 2022.
First, buyer demand has been strong in 2021, picking up quickly just at the end of the first quarter last year. That buyer demand has remained strong throughout the year, driving prices for single family homes up over 26% on average, and some communities even higher. Right now, housing prices in Tampa Bay are at historic highs, while interest rates remain at historic lows.
I see that trend continuing in 2022 with home prices continuing to rise, although not at the incredible pace we saw last year.
Several factors have contributed to the strong seller’s market in Tampa Bay that we find ourselves in.
We can blame COVID for all sorts of things, but it did contribute to all kinds of follow-on issues.
- Supply chain delays in construction materials – windows are the current dilemma
- Rising costs of construction Materials due to manufacturing shutdowns and delivery issues.
- Changing buyer desires – With more folks working from home, HOME takes on a whole different look. Working virtually means that people can live anywhere and what better location that a place with plenty of sunshine, beaches, no state income taxes and comparatively low property tax rates?
- Generational homes have been and continue to be in demand as people to become stay-at-home Mom’s and Dad’s as well as teachers for their kids and caregivers for their aging parents.
Low mortgage rates have driven first-time and move-up buyers to take advantage of the ability to buy now, as well as 2nd home and vacation home buyers. Why travel abroad when you can staycation for less?
Tampa Bay has seen many technology and financial companies moving their headquarters to the area. That’s driven the relocation of employees, adding to demand for new and existing housing.
Commercial property has seen a marked increase, especially in multi-family housing. That will continue to be a HOT investment for the foreseeable future
I have buyers tell me every day that they want to wait because the market is going to crash. It’s got to right? Not so fast!
I see housing demand continuing to stay strong. Expect interest rates this year to climb to 4% and maybe slightly higher as the Fed implements at least 2 rate hikes this year to help ease inflation. That means price increases may slow as demand eases, but that’s all relative. There’s more than enough buyer demand for the market will stay strong through 2022. Supply chain issues will hopefully ease as we learn to live with COVID as a new “normal” with manufacturing and distribution getting back to full strength, meaning construction materials will be more readily available.
I’m excited for all the opportunities for growth this year. I’m here to answer all things Real Estate related, so please feel free to call if you have any specific questions. If I don’t have an answer, I GOT A GUY!
Remember, for your Real Estate Dreams, Don’t Get Antsy, Just Call Nancy!