We all are curious to see what 2022 will bring to the real estate market. Many believe the prices will keep going up, others believe there will be a correction, and some even compare today's market to the 2008 crash.
Making an exact forecast is impossible, but experts in different fields have the industry experience, data, and tools to show trends that might continue throughout the new year.
We have combined these predictions with our own experience in the local market to bring you our top 3 forecasts and trends for the 2022 South Florida real estate market:
1. The Market Might Correct, but It Will Not Crash.
People compare today's market to the 2008 crash because of the rapid rise in prices and accessibility to loans. In short, the 2008 crash occurred because banks gave out loans that people couldn't afford, which led to them defaulting on their payments, and foreclosures flooded the market. New guidelines were then put in place to keep this from happening again.
Even when loans are more accessible due to low interest rates, one must meet many conditions before being approved for a loan. Lenders work hard to ensure that borrowers show a stable income, good credit, and overall good financial standing to qualify for a one. In addition to that, supply chain issues hindering the new-construction projects and an inventory that cannot keep up with current demand are good indicators that a crash is highly unlikely.
2. More Inventory Will Become Available.
Many experts believe that 2022 is not the year we will see prices drop, but more inventory will become available as interest rates go up.
During an interview with Rismedia, Brian Buffini explained that first-time homebuyers will be the first to be affected by this. As interest rates keep going up, we will see fewer homes with multiple offer scenarios, and they will also sit on the market for more time. Buffini also explains that high-end real estate will be the last to feel this change.
3. The Florida Market Will Keep Growing.
According to many experts interviewed in an article by Floridarealtors.org, the influx of people moving to Florida from other states and lifting restrictions for international buyers will keep the Florida market healthy during all of 2022.
Keep in mind; these predictions are based on our observations and those of experts in the field. Please do not take this as direct real estate or legal advice. Always talk to an expert that can give you advice based on your specific situation before making any financial decisions. We are happy to answer any real estate questions and be your trusted real estate advisors. Call us!
