To be honest, nobody really knows what 2022 will bring for the real estate market! But, that doesn't mean that experienced agents and other professionals in the field don't have some ideas. Leah Azizian shares with us some thoughts on the 2022 market, particularly related to NYC but Azizian's thoughts can be applied to the market in general.
2022 will be a big year in many ways and we are excited to see how the market shifts!
Thoughts from Leah Azizian
Azizian shared that, "In 2021, the market in NYC bounced back stronger than expected. The demand built up over the pandemic led to rising prices, sales volume and lower discount rates. On the resale side especially, we saw the median prices rise to nearly double amongst all types of housing.
Despite the projections for interest rates to rise in 2022, the rates are still at historical lows. I believe a combination of this along with the continued low inventory, will allow for both demand and prices to continue to rise - yet at a slower pace than this past year.
On the new development side, this past year, we witnessed a dramatic decrease in offering plans submitted due to the rising construction costs. I believe we’ll start to see constructions costs come down a bit in 2022. But, there’s still an excess amount of supply that needs to be absorbed. Unlike the resale market - which I do believe will continue to see price “normalization".
Additional Market Musings
As Azizian stated above, while interest rates are indeed projected to go up - they're still starting that incline from lower than normal. While some project that the market will crash like in 2008 - the evidence is few and far between to support this. While prices may not continue to see such steep inclines in short amounts of time - real estate values always go up over time.
The more widely accepted view on the 2022 market mirrors Azizian's opinions. The market continues to rise but at a more reasonable pace. Many industries have high hopes that materials costs will level out.
As people find their footing in a post-pandemic society, more are entering the real estate arena. While we wish we were looking into a crystal ball - time will tell!
LinkedIn for Leah Azizian
Leah Azizian LG Fairmont Profile
Have a comment, tip, or concern?
Thanks for reading Elite Informer! Here's more where that came from.