Looking Ahead – 2022 Real Estate Forecast

2021 was a year full of unexpected twists and turns, and the real estate market was not exempt from the excitement. The pandemic sent the real estate market into a frenzy and prices soared as individuals competed with dozens of other buyers to find their dream home. As a result of low inventory, historically low mortgage rates, homebuyer priorities shifting, supply chain troubles and a multitude of other factors, the market saw a noticeable shift that will most certainly have an impact in the coming year.

So, what will 2022 hold in store for us? 

While we can’t say for sure what the future holds, we can make some educated predictions with the data available to us. 2022 is likely to continue as a seller’s market as home values are expected to remain on the incline, not only in Atlanta, but across the country as well. Interest rates are already starting to follow the trend of home prices and will likely cause mortgage rates to increase alongside. In conjunction with the increasing prices, we are likely to continue seeing a competitive market – although not as hectic as the past year. This being said, if you have been waiting out the market in hopes for a dip in prices or bidding wars to subside, you may be out of luck based on many market-wide predictions.

Scarce inventory will follow us into 2022, aided by supply chain issues and labor shortages that have only added to the problem. Although builders have attempted to correct the situation by increasing production, the sheer volume of demand and lack of supply will make correcting this issue a slow-going process, and not one we will see fixed this year.  

“The profound growth we witnessed in Atlanta during 2021 is poised to continue through the new year. Atlanta’s unparalleled job growth, global connectivity, and relative affordability will continue to propel the metro’s real estate market to another record year. Expect continued high demand and low inventory to fuel price appreciation” says Founder and CEO of Engel & Völkers Atlanta.

On the buyer’s side, it will be more essential than ever to keep an eye on new listings as you should be prepared to move quickly on presenting offers once your home has been sold. Starting early in your search while your home is on the market, will help prevent you from overpaying on a property as it gives you the time you need to make an educated decision once your home has sold. 

For more information on the market, visit www.evatlanta.com.