What to expect from the housing market in 2022: Another sellers’ market

Between inflation, supply chain woes and higher prices, it’s going to be a tough market for homebuyers.

The last 22 months have been some of the wildest in real estate history, as the COVID-19 pandemic accelerated the speed and intensity of recent trends. Home prices surged to record-breaking highs. Interest rates dropped to historic lows. And, amongst it all, the new era of online home buying and selling took further root. On top of that, just about every contemporary macro-economic trend — from inflation to supply chain woes to labor shortages — made an appearance in the 2021 housing market, increasing the advantages of existing homeowners, daunting prospective homebuyers and, ultimately, further widening wealth inequality in the US.

Though no one can predict what the next year will bring, we’ve asked some industry experts to help us read the tea leaves. Perhaps most significantly, home prices are expected to continue to rise, though at a slower rate than last year. As such, the 2022 housing market will present challenges for new buyers looking to get a foothold. For those looking to sell, new technologies like iBuying will continue to streamline and simplify real estate transactions. And existing homeowners will likely have another year to capitalize on rising property values through refinancing — if they haven’t already

Experts also predict an extension of two major 2021 trends: low housing inventory and supply chain issues, both of which will continue to hamstring construction and renovations. Meanwhile, there are two new spectres on the scene: inflation and rising interest rates. “For a homebuyer, 2022 is going to require patience and strategy,” said Robert Dietz, chief economist the National Association of Home Builders.

“If you think you’re going to wait on the sidelines for the market to cool off, that usually doesn’t work,” cautions Karan Kaul, senior research associate at the Urban Institute. “Timing” the market is a tricky enterprise, and prices seem unlikely to decrease meaningfully any time soon. 

With the caveat that political and virological developments can wreak havoc on this unpredictable corner of the economy, here are some of the major factors experts see influencing the housing market in 2022.

By : Alix Langone CNET

Buyers can expect tight competition for homes to continue into the new year.

The Guaranteed Offer

You see these “Guaranteed Offers” marketed everyday in the real estate business. Another way these type of deals are marketed is “We Buy Houses”. There are several ways these programs work. The most important thing to know is that you will sign an agreement with terms. Just the same way you sign an agreement with your licensed listing agent, with terms and conditions.

Now typically if your house is one that has great functionality and is in a great location, and is correctly priced, it will sell. The only houses that may be a challenge to sell is the property that needs work, or is in an iffy location. But if priced correctly those homes sell to and just as fast. You see the picture ? PRICED CORRECTLY !

Now with price in mind, the guaranteed offer program works in many different ways. It all depends on what you sign and agree to. Some companies may purchase your property from you if it don’t sell. In order for the purchaser to profit, it will most certainly be sold to them under market value. You may also agree to a term in which if the property does not sell, the agent will sell it without compensation after the agreed period of time, or for less then the starting commission. You must read the fine print. You should never sign documents without fully understanding the terms and conditions.

When property owners see the ADVERTISMENTS for “NO SHOWINGS”, “NO OPEN HOUSES”. Well you must understand that most likely someone is going to view your home at some point. That is considered a showing. Even in a traditional sale you do not have to offer open houses, and you can control how many showings, and when you want the showings to occur. It’s all in what you agree to as the homeowner. Now your home may sell very quickly because of the price. Yes, under market value or fair market value. All those homes sell fast. You see the picture once again its all in the price.

Now if you are looking to make a profit on your investment, if you made renovations, worked hard making payments and have taken great care of your home, then I would recommend you hire a licensed Realtor who is looking to get you the “HIGHEST PRICE POINT” possible for your property. A professional looking out for your best interest, not the interest of their companies or for their own profitable interest. So understand that when you see “the guaranteed offer” or “we buy houses” just know there is a catch 22 to those deals.

Lakewood Realty will guarantee you that we will get you the highest price point possible for your home. We have proven results. Just look up our testimonials and reviews. We also will find you your dream home and negotiate every way possible for you to buy the property for what it’s worth ! No gimmicks, no ploys, just real results. Always remember, read all agreements very carefully prior to signing.


HOW TO APPLY MIND CONTROL TO YOUR REAL ESTATE BUSINESS: It All Starts With Your Brain – Kindle edition by Lisa Marie Grimes

Did you know that your thoughts your thoughts are filled with energy that complies to law’s. Experts estimate that the mind thinks between 60,000 to 80,000 thoughts a day. Of those thousands of thoughts per day, the National Science of research summary found that 80% are negative thoughts, 95% were exactly the same repetitive thoughts as the day before.

This book can be applied to any profession.


Coronavirus sows uncertainty in Nashville housing market

Although real estate has been designated an essential industry, health and safety is at the forefront of people’s minds right now, even motivated sellers and serious buyers. 

“We will see a drop off in activity, period,” said Checko of RE/MAX Advantage. “But the silver lining for buyers and sellers is that people that are active in this marketplace are active because they need to be.”

Realtors are taking precautions to keep themselves, their clients and potential buyers safe. They’ve already suspended public open houses and turned to virtual tours or online showings. If a client wants to see a house in person, realtors are asking sellers to leave out disinfectant wipes to wipe down any doorknobs, light switches or surfaces that would be touched.

Although there’s been an uptick of “wait and see” attitude, Checko says not everyone is in the same boat and even though these times can be scary and uncertain, market trends are not slowing toward a recession.

“When people ask my advice, I tell them to keep an eye on new construction. Especially big national builders,” says Checko. “Those guys are going to make decisions that serve their business and shareholders, first and foremost. That means they’ll be the first to drop prices. They’ll be the first to stop working. And so far we’re not seeing that.”

Checko says agents are staying positive during this time and expecting a big bounce back for the end of the year after a small set-back this quarter.

Nashville High-Rises

Did you know how many high rises are in Nashville? How many high rises were completed in the past three years? How many high rises are still going up? What are the tallest high rises?

This two tallest buildings in Nashville ranks skyscrapers in Nashville, in the U.S. state of Tennessee, by height. The tallest building in the city and the state is the AT&T Building, which rises 617 feet (188 m) in downtown Nashville and was completed in 1994. The second-tallest skyscraper in the city is 505, which rises 545 feet (166 m).

High-rise buildings first appeared in Nashville with the construction of the First National Bank Building, now the Downtown Courtyard Hotel, in 1905; this building rises 168 feet ( 51 m) & 12 floors.As of October 2019, there are 137 completed high-rises in the city. Twenty high-rises have been completed in the past three years, with another twenty currently in construction, fifteen approved, and another 25 high-rises approved and proposed. Nashville has demonstrated quick approval of many major projects, such as One22One. It was announced in February 2019, with the previous building demolished and ground breaking expected in September 2019. By April 2019 Nashville was starting to get bigger in building depth from the 2010 to 2020+ building spree/boom and will continuously go throughout 2023. Nashville has approximately 35 cranes up as of September 2019.

Nashville’s housing market is cooling. Here’s what you need to know.

After two years of historic year-over-year home value jumps in the greater Nashville market, a cooling trend has taken hold.


Sellers are dropping prices, buyers are getting more concessions and competition for properties has eased. 

The trend began in the fall, and continues to deliver progressively lower gains to home prices each quarter.

Home owners are still enjoying rising values — but at a more modest rate than during the market’s hottest period, when prices vaulted 32 percent from spring 2016 to spring 2018

Nashville is slowing down faster than the nation,” said Skylar Olsen, senior economist at Zillow. “But I don’t think (prices) will begin falling in Nashville for some time yet.”

Meanwhile, rents are feeling the slowdown too. They rose, year-over-year, just 1.5 percent to a median $1,512 per month in January, according to Zillow. 

Housing market slides

Since April 2017, the 10-county Nashville metropolitan area slid from the third to the 14th fastest growing real estate market among the nation’s largest cities, according to Zillow. 

Cities from coast to coast are experiencing similar housing market deceleration — with the most extreme downturns in Seattle, San Francisco and other areas that saw the most dramatic gains in recent years.”The places where the slowdown is more apparent are places that were moving at such an incredible, unsustainable pace,” Olsen said. “When prices go too far, too fast, demand starts falling back and appreciation slows down.” 

The Nashville area’s real estate industry hit an all-time peak in the third quarter of 2017, according to The Colliers Index, which was developed by the global real estate services and investment management company. 

That quarter was a time of record investment in new offices and a record number of construction permits issued. But, all in all, the news isn’t bad. 

The downturn is a healthy market correction after years of housing price increases outpaces wage gains, analysts said. 

In late 2018, Nashvillians needed to earn a $74,018 salary to afford a home, according to real-estate industry analyst Attom Data Solutions. But the average worker made $59,020. Housing markets are supposed to move closer to income,” Olsen said. “I hope we’ll only be seeing those (record-high home price growth) numbers in the rear-view mirror. It is certainly exciting for home owners watching their values appreciate. But it was really hard for home buyers.”

At the peak of Nashville area’s housing boom in April 2017, 31 percent of buyers paid more than the listing price for homes because competition was so high. 

In January 2019, 13 percent of buyers paid more than the home’s listing price, according to Zillow. 

“13 percent is still pretty high,” Olsen said. “That just tells you we’re not back to a normal housing market. It takes a little bit of time for our expectations to catch up.”

Home buyers are gaining the upper hand in Nashville as demand continues to trend down this year.

Home appreciation has slowed nearly every month since last fall, following year-over-year double-digit growth from 2016 to mid-2018.

In March, price growth mellowed to roughly the same rate as the national average of 6.6 percent. 

Average home values grew by 6.8 percent in March, compared to the year prior when prices jumped 11.2 percent over March 2017. 

The decrease, a result of reduced demand, is also taking place in other fast-growing markets. 

“Nashville is one of the many places where prices were growing at an unsustainably high rate,” said Zillow economist Jeff Tucker. “So a slowdown reverting to a vanilla, boring marketplace I think is good for people.”Neighborhoods with the biggest drop in demand from March 2018 to March 2019 included downtown Nashville, the southern end of East Nashville, Hillsboro Village, Music Row, Spring Hill, Sylvan Park, Forest Hills, Bellevue, Hermitage, Nolensville, and Antioch. 

2019 Real Estate Forecast: What Home Buyers, Sellers And Investors Can Expect

There’s no doubt about it: the 2018 housing market has seen its ups and downs.

The year started with sky-high home prices, historically low mortgage rates and a definitive upper hand for sellers. In recent months though, home price growth has faltered, rates have risen to their highest point in nearly eight years, and favor has started to shift from seller to buyer.

Will these trends continue? Will housing experience the same wild ride in the new year? Here’s what experts predict will happen in 2019 real estate market:

Mortgage rates will continue rising.

“Despite steady climbing for the past two years, mortgage rates remain lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing. That will change in 2019, as the 30-year, fixed rate mortgage reaches 5.8% — territory not seen since the dark days of 2008 when rates were racing downward in response to the housing crisis.” — Aaron Terrazas, director of economic research for Zillow

Millennials will keep buying homes — despite those rising rates.

“The housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand. Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market. On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.” — Odeta Kushi, senior economist for First American

“Millennials will continue to make up the largest segment of buyers next year, accounting for 45% of mortgages, compared to 17% of Boomers, and 37% of Gen Xers. While first-time buyers will struggle next year, older Millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up the majority of Millennials who close in 2019. Looking forward, 2020 is expected to be the peak Millennial home buying year with the largest cohort of millennials turning 30 years old. Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time.” — Danielle Hale, chief economist foRealtor.com                                                                                                                                                                                                          superthumb                                                                                             

Predicting The Future Of Real Estate: Transacting In 2025

I’m no Nostradamus, but I’d like to take a stab at what the world of real estate transactions might look like in the year 2025. Yes, it’s only six or so years away, but with the speed at which technology is changing our world, to make predictions any further in the future would be purely speculation. I do like to think about what the future of our industry might look like because it gives us the ability to remain nimble and keeps us aware of trends and changes in the real estate world so we can adapt. Anyone who thinks that real estate transactions are immune to technology and shifting consumer trends will likely find themselves in a different line of work in the not-so-distant future.I see homes in the future being listed not with a couple dozen still photos and a short description, but on a platform developed to immerse the buyer in a 3D environment where they are able to read reviews and comments on a property by anyone who has seen the property physically. Perhaps pre-loaded inspections and repair estimates included in the platform would remove the classically intensely uncomfortable period of requesting and negotiating repairs. How about links to service providers and anticipated maintenance schedules? Everything a prospective homeowner would need to know to make an informed buying decision.

The key here is information — and transmitting it quickly. People expect more and more information and to have to expend less effort to get it. They expect to have even their biggest purchases secured with a money-back guarantee or a trial period. It isn’t too much of a stretch to think that real estate technology that mirrors these expectations would create a new world where the traditional agent transaction is just that — traditional.
Forbes Real Estate

By: Stephanie Betters