Happy Happy New Year! Am I the only one that is having a hard time saying and writing 2022? It doesn’t even sound like a legitimate year. Yet here we all are.
So many mixed emotions can come from a New Year; it can be not only exciting but full of angst as well. The pressure of a new you, new goal setting, reflection on the past year, changes…changes…changes. Speaking of which, we sure saw a lot of changes in 2021 in the real estate world.
The local market was inundated with unprecedented demand. As agents learned to guide buyers through multiple offers, waiving contingencies, over bidding, out bidding and the list goes on; listing agents poured through countless offers trying to figure out which offer would actually result in a ratified sale. Interest rates remained low and the local market was hopping with people upgrading or downsizing.
Of course, as we enter into 2022 everyone is asking what we expect this year in the Jackson County market. Well, if I had a crystal ball, I would have gone back to 2018 and bought every piece of property I could afford and then offloaded it in 2020 and 2021. Based on our combined 30 years of professional experience in this career, we believe inventory will remain low, which will keep pricing solid. However, the additional 5-10% sales price above what was justifiable with comparable sales that we saw towards the tail end of 2021 will most likely be a thing of the past. We are already seeing pricing soften from what sellers were realizing in September and October of 2021. Properties are still moving but just not at the inflated prices we were seeing a few months back.
I do believe we will see a climb in mortgage interest rates, but nothing that will scare most buyers that are over the age of 30. The rates will still be favorable when you take into account the history of interest rates over the past 30+ years. We have a lot of local movement where the interest rate on their current home is more than it will be on their replacement property.
2022 is bound to have some bumps and challenges. I think all of us know that by living through the past 18 months. But I can promise you this, there will be a lot of joy not only in between those bumps, but during them too. May you walk into this year with your feet firmly planted and your eyes up. Grab the joy and brace for the challenges. We know our team will be doing just that.