The last two years have brought a lot of twists and turns for the average local real estate market. In an attempt to get ahead of the expected trends and make the most of your next home purchase or sale, here’s what buyers and sellers should know about the Belleville real estate market in 2022.
Changing Interest Rates
One of the most-discussed topics we are seeing on the horizon is the possibility of increasing interest rates.
The Federal Reserve has been eyeing this increase in interest rates as a method to help combat inflation across the entire economic landscape. This volatility was created as we collectively entered a crisis mode of operating throughout the last couple of years to cope with drastic changes in just about every facet of our lives, and economics were certainly not spared.
Periods of freefalling consumer spending and confidence and rather severe supply chain shortages have taken their toll, and we are just in the process of pushing through these difficulties in order to right the ship.
Current estimates for increases in interest rates are ranging between a quarter and a half of a percent, which could easily shift the number of mortgages issued and the number of buyers looking to purchase a home.
Home Inventory
A mainstay of the dialogue happening over the course of our global pandemic complications has been the consistently low number of homes available for sale.
There has more recently been an uptick in the available home inventory as more owners were spurred into action due to easing COVID fears and some for the sake of jumping on the bandwagon in hopes of cashing in on a red-hot sellers market. The home inventory is expected to remain rather low during 2022, but we do think these low inventory issues will ease as the year rolls on.
It remains to be seen how the home inventory will adapt to changes with interest rates, but this will likely lead to fewer owners refinancing rather than selling their homes.
Reigniting the Urban Markets
As the global pandemic escalated in 2020 and 2021, we witnessed a sort of exodus from highly urbanized areas.
People with the financial means and flexible remote work environments began to look at purchasing housing in less populated areas of the country, even if only just outside of their current city. With a couple of years’ worth of knowledge and experience under our belts, COVID-related concerns and anxiety are more manageable and no longer pose a seemingly insurmountable obstacle.
These same people who left their former urban homes may be looking to return over the next few years, and we also expect to see a big resurgence in foreign investment in these urban locales.
A Gradual Cooling Effect
The most general estimation that is being put forth for the real estate market is the idea that home appreciation that has been almost running rampant the last year will be curtailed substantially over 2022.
Appreciation is still likely to continue, but at a much slower pace. Looking at the big picture, real estate sales themselves are looking to slow as well. At this point, in the midst of a lingering global pandemic, the ultimate goal is pushing toward normalizing markets closer to pre-pandemic status across the board rather than pushing for extravagant growth.
Guidance Through a Changing Real Estate Market in 2022 and Beyond
Things change quickly when you’re looking to buy or sell a home, and it’s important to stay on top of the latest trends to get the most out of your experience. If you’re planning to buy or sell property in the Belleville real estate market in 2022, contact our experienced team today at (618) 830-7931!