And we’re back! The market is in full swing for 2022: the first week of January felt like spring market. It was off to the races, telling me that this winter’s market is going to be hotter than pre-pandemic winters. The momentum from last March – October is back and will only continue to pick up as we head from winter into spring. All signs point to housing demand remaining very high.
Inventory will continue to be tight, and finding the supply of homes for buyers will be our biggest challenge yet again. Sellers, however, are no longer feeling the need to wait for spring market, and buyers are feeling more rushed than ever as interest rates start to increase. In turn, prices will rise at a gentler rate, but they will still rise as over 80% of homes are selling within in thirty days.
The supply shortage has been an ongoing issue even pre-pandemic. Underbuilding is a part of that, as builders are only supplying half of what they were in 2006/2007 time frame. Unfortunately, the building starts are now slowing down even more; not that there isn’t demand, just that they are taken longer to get in ground due to material and labor shortages. You can expect new construction costs to remain high.
Buyers will feel like they are overpaying with any purchase, but if they wait, the house they passed on will seem like a deal six months later. The Charlotte market is changing very fast and there are no signs of Charlotte’s growth slowing down. Multiple offers are not going away, so buyers better have their financing in line. If you’re contingent upon selling your current house, figure out how to get noncontingent, as you won’t have any chance of being competitive.
On the flip side, sellers still need to invest in preparing their home for market. You simply cannot drive the best price without doing so. For some sellers, this can mean painting every single surface of the interior and exterior, as well as staging. For others, it means getting a storage unit and doing a good deep clean and landscaping refresh. Even in this market, sellers do not get top dollar for an unmaintained or dated home.
In summary, 2022 housing market will feel much like 2021’s market. The biggest looming factor is what the fed will do with interest rates. A slower price growth due to higher interest rates may not necessarily be a bad thing, as we need the market to stay healthy, and it may result in some sellers bringing their homes to market sooner, rather than later, also not a bad thing.
We are always here to help, answer questions or give guidance on any of your real estate needs. We truly believe that our relationship with our clients starts at that first sale. We expect you will reach out when you have questions about the addition you are considering, or what your home might appraise for on the refi process you’re starting. We are happy to pull comps and send them your way. It is truly an honor to be your real estate advisors; don’t hesitate to reach out.