Financial Friday: Real estate predictions for 2022
Will 2022 be anything like the frantic year we have just experienced in real estate sales and purchases?
HUNTSVILLE, Ala. (WAFF) - From bidding wars to a low supply of houses, 2021 was a very difficult year for homebuyers, especially first-time homebuyers.
According to data from the National Association of Realtors, the median price for an existing home rose to just under $354,000 last year, an annual increase of around 14 percent.
Economists predict that the prospect of higher interest rates could act as a brake on home price gains in 2022.
WAFF spoke with realtor Melanie Brooks. She works at Redstone Family Realty and is also on the Women’s Council of Realtors. She’s worked in the industry for nearly 30 years. She says last year was unlike anything she’s ever experienced. However, after studying some of the numbers she says 2022 looks like a more centered market.
“It looks like our market in North Alabama is shifting away from a seller’s market to a more centered market. The flood of buyers is slowing, and that makes the market change a bit. Inventory is also climbing and homes are staying on the market a little longer. We’re also not seeing the astronomical prices we saw in 2021,” said Brooks.
She also offered these tips to help buyers and sellers:
- First, if you purchased, sold, or refinanced in 2021, your tax preparer will need to know that information. Several of the costs involved will affect your taxes.
- If you are considering buying or selling in the new year, the market is shifting a little away from the “Seller’s Market” and returning to a more centered market. Homes are staying on the market a little longer than a few months ago. The selling price is a little more negotiable, as well as the costs and repairs involved. Also, the sudden flood of buyers has slowed down.
- If you are considering updating or renovating your current home, consider getting a market analysis from a professional real estate agent. It can tell you your home’s current selling price and you could use that as a guideline for how much you spend on improvements
- Another tip for the new year is to treat your home like you treat yourself, and get a check-up. Service your HVAC; Clean gutters; Clean your dryer vent; Check outside faucets for leaks.
For more ways to save be sure to tune in at noon every Friday for WAFF 48′s “Financial Friday” segment.
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