2022 Housing Market
There has been talk in the news recently about rising inflation, and we have all experienced cost increases over the last few months. National news articles predict the real estate market will ease in 2022; meaning slower home price appreciation and fewer multiple offers. What you really want to know is about the 2022 real estate market in the Triangle NC area because real estate is local.
Real Estate is Local
Based on what my clients are experiencing in November and December 2021, the real estate market is going to continue to be brisk in the Raleigh, Durham area in 2022, at least until mortgage interest rates increase significantly where buyers are going to have a hard time buying in their budgeted price range. Predictions for the local market are that house prices will appreciate (increase) around 8% in 2022, compared with 20% in 2021. 8% appreciation in 12 months is still more than we saw in the area in the past and means a $500,000 house in December 2021 will cost $540,000 at the end of 2022.
New Home Prices
Construction costs are still high and we will continue to experience shortages of building materials. Developers and builders are having to pay high prices for land to build new homes, so buyers will continue to see new homes prices increase but we will start to see builders offering concessions/incentives to help buyers such as paying mortgage closing costs or helping to buy down the interest rate.
Homes Priced Under $400,000
Homes priced under $400,000 will be most in demand as investors continue to buy real estate in the Triangle area. This price range is also going to see the highest appreciation since new homes are expensive to build. Demand for outlying towns will continue to be strong as buyers are still working from home and will be ok with a longer commute as long as they’re not driving into the office 5-6 days per week. Luxury homes will continue to be in demand as well, but buyers will want houses to be in move-in condition because they are less inclined to wait for renovations.
Triangle 2022 Housing Market
In summary, the Triangle area real estate market will be slightly impacted by inflation but is not going to be enough to swing the pendulum back to a buyer’s market in 2022.
Any specific questions about the 2022 real estate market – just ask!
You need an experienced professional to help you navigate the current real estate market. Feel free to call me with any questions: 919-818-5001. Call or text Amy for your Shair of the market! Or contact us here.
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