What will the real estate market be like in 2022? Randal and Erik let you in on their predictions.

Randal:

Are you ready for 2022? We are and here's what to expect. 

Erik:

Welcome back to "Stay Focused," Focus Real Estate's weekly video series. Been a heck of a year. 

Randal:

Heck of a year? It's been a heck of a couple of years. 

Erik:

It's been a heck of a couple years. This time of year, we always love to get our crystal ball out and see- try to project what to expect for the coming year. 

Randal:

And really, what the experts are saying is, "God, we feel like a broken record." Expect 2022 in the real estate industry to look a lot like- 

Erik:

2021. 

Randal:

I might have been a tad bit more skeptical making this video one short year ago and by saying, "Not quite sure what 2021 is gonna bring, although the experts are saying it's gonna be a big deal, right?" Because why? Last fall, our market just went- Last fall. It was kind of- 

Erik:

Mediocre. 

Randal:

Mediocre. 

Erik:

It wasn't bad! 

Randal:

And this is us talking from this standpoint where we're in such a strong market in Massachusetts. But one of the things I can tell you for certain- the fall of 2022 was not- It was like ka- This was probably one of the most exciting fall markets I think we've had in going into- 

Erik:

In quite a few years. 

Randal:

In quite a few years. And so, you know, that really does promise 2022 being, again, driven by those same things: low inventory, low interest rates. We are gonna see what? 

Erik:

A little higher interest rates. They're saying- experts are predicting interest rates rising another one, one and a half percent by the end of next year. We are seeing lots of inflation as you're feeling in your pockets and seeing at your gas pumps and everywhere else. Things are more expensive. One way the government has a way to manage the inflation is raising interest rates. The interest rates have been so low for so long. And so, we are gonna be seeing some rising interest rates, which are going to have some effect on some buyers' ability to pay and buy things. 

Randal:

You know, we keep hearing, "We're waiting for the market to correct. We're waiting for the market to correct." You know, "I'm gonna buy when the market, well, it takes a- when the market collapses." We're- in my projection of the Boston-area market- we're not gonna see this market collapse. We have too much employment, too much technology, too much banking, too much education to support these prices. Although as they seem very high, the affordable index is still actually in such good favor to support these prices moving forward. And I thought this was a really great piece of information- our market, although it may seem like this to you guys that have been in the market for the last year or so- is not escalating an exponential return. 

Erik:

We are not a crazy market compared to what you're seeing in many areas. 

Randal:

Texas, Florida, California, Arizona. 

Erik:

And different other markets that are seeing much higher appreciation than what we're seeing. We're pretty average right now in Boston and they're predicting about the same for next year. That's 2022. If you're looking to buy or sell, should be a strong year. Spring market for buyers- always crazy. And for sellers, we're expecting more of the same and a strong year in 2022 with some slight changes. 

Randal:

What you want to do is enter the season prepared. So, let us know how we can help you. And until next time- 

Randal and Erik:

Stay tuned and stay focused. 

Randal:

This is really important to work.