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About a month into 2022, Haute Residence experts from across the country give their opinions on where they see the market heading this year.
What are your predictions for the real estate market in 2022?
Catherine Burgess, Boulder, CO - The national migration will continue to slow, but Colorado Front Range demand for housing will remain high, as more businesses and individuals relocate here. Expect slim inventory, similar to or possibly slimmer than we've had for the past handful of years.
Amy Land-de Wilde, St. Croix - We ended 2021 hitting record sales. Our sales volume is the highest it has ever been, even compared to the 2006 boom, which was our highest year until 2021. Heading into 2022, we anticipate buyer activity staying steady.
With very low inventory, we don’t anticipate our sales volume to be as high as 2021. Many property owners on St. Croix are holding on to their properties in America’s paradise, specifically homes and condos, for several reasons. Vacation rentals are at an all-time high yielding higher returns than previously. Baby boomers are “retiring” and making the full-time move to St. Croix and working remotely. Since so many have the ability to work from anywhere, why not work in the beautiful US Virgin Islands? This mentality is encouraging owners to spend more time on St. Croix and hold on to their St. Croix, USVI real estate assets. The pandemic has encouraged buyers to escape the congested city life for locations like St. Croix where living outdoors and having space to roam makes living easy and enjoyable, and we anticipate this to continue into 2022. We are still seeing a lot of 1031 exchange buyers looking to put their dollars into St. Croix rather than other sunny locations like Florida, St. Thomas, or St. John because their dollar goes further here. Also, many investors are just realizing that 1031 exchanges extend beyond the 50 states, into the US territories, like St. Croix.
We look forward to welcoming buyers to St. Croix to experience our culture, community, and laid-back lifestyle!
Hilary Farnum-Fasth, Scenic 30A, FL - 2022 will be another year of low inventory and high demand as buyers want to continue to take advantage of low-interest rates.
Debra Johnston, Atlanta, GA - My predictions are that interest rates will remain the same and the market will remain On Fire!
Debbi DiMaggio, Berkley, CA - The Piedmont, Oakland, Berkeley, East Bay market has incredibly low to no inventory at this time. Buyers are waiting in the wings for new inventory to hit the market. We even ratified a home in Piedmont on Christmas morning for $4,000,000; we didn't even have time to paint or stage. I anticipate multiple offers on homes properly prepared for market in all price ranges will continue to be the norm in 2022. It's all about supply and demand, and our supply is always fairly limited. Happy New Year from the DiMaggio & Betta Group.
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Lisa Culp Taylor, Tennessee - In 2022, my prediction for the Nashville area is more of the same as long as interest rates aren’t raised substantially. I really feel the first half of 2022 will be similar to 2021. We are extremely low on inventory and demand is still huge. In the first week of January, in the middle of a huge snowstorm, we had people come in person to view a multi-million dollar listing, which just hit the market. The gorgeous home ended up earning a contract over the asking price. Now, more than ever, you need an experienced Realtor to help navigate this type of real estate market.
Elisa Linton, Kingwood, TX - I see the Real Estate market still holding strong. Interest rates have started rising just a bit so both buyers and sellers will need to react smartly and swiftly in order to be on the favorable side of the transaction. It still makes dollars and sense to invest in real estate.
Debbie Wysocki, Deerfield Beach, FL - Based on where we were 18 months ago and where we finished up 2021 and taking into consideration the “Top 100 Economists” predictions for the real estate market, I believe Southeast Florida - and the East Broward County waterfront, Oceanfront, and beach community properties market will continue to be a Seller's market in both Traditional and entry-level Luxury ($1 to 4 million) homes. Mid-Level and Ultra Level Luxury in these same communities will also remain strong and buyers should be able to negotiate as much as a 5 - 7 percent discount off List Price.
Why is the market continuing to remain so strong? We are seeing significant migration for tax, weather, pro-business, and lifestyle reasons. My prediction is Waterfront, Oceanfront, and beach area homes will continue to appreciate at a moderate rate somewhere between 6-8 percent over the next 12 to 18 months. Obviously, our buyers/investors are typically cash, but interest rates will remain at historically low levels even with their slight increases. I always encourage my clients to refinance after closing and use OPM (other peoples’ money) for additional investments.
We serve a variety of clients - those looking for a second - third and even fourth home; those families (including sports professionals) looking to relocate for their job, and investors looking for a strong return on the Luxury Vacation Rental Market - for which we are well known.
Please let us know if you would like to know how I arrived at these predictions - I am numbers-driven as my background is almost 11 years as a Beverly Hills Financial Analyst.
Scott Goshorn, Brentwood, CA - January is off to a blazing start! With low inventory and Covid still pinning many people down, I see a strong year for 2022. Home has a different value and space has become prevalent. Also, the threat of increased interest rates has pushed the fence-sitters into purchase mode.
Heidi Bintz, Vail Valley, CO- As we move into 2022, I expect the real estate market to remain at a steady pace. We may see a decrease in total sales volume over 2020 and 2021, but that would only be due to a smaller pool of available inventory. As a result, buyers will need to continue to move quickly when embarking on their home search all the way through the purchase process.
The state of Colorado takes great care in protecting its public lands, and as a result, there is a limited amount of space in which homes can be built. In the Vail Valley (in Eagle County) specifically, located two hours west of Denver, just under 20% of the land is designated for private use and so the demand for homes can be quite limited by the available inventory. Colorado resort towns remain very desirable for the lifestyle that they can provide and so a purchase in the mountains is a great long-term investment in real estate. Come take a look!