I found this interesting article from Redfin’s economist. Redfin is a national real estate brokerage, so I don’t recommend that you actually work with them (you should work with me!), but they do have national economists writing articles with some juicy tidbits.

Some interesting predictions are that people will move based on their political affiliation, and that the way agents are paid could change with buyers having to pay for their agents out of their own pockets rather than the Seller paying the Buyer’s agent’s fee. Market pricing and rents will increase, along with interest rates. Let’s see if what they say really happens in 2022!

My personal prediction is that we are going to continue to see stable or increased pricing (at least 5% next year, but could be as much as 10%), in large part due to inflation and the increase in household income. See the charts below illustrating first, Household Net Worth which is now at 128% of GDP. This is driving demand and will continue to do so. We are also seeing that Disposable Income is being eaten by inflation. So, as rents continue to increase, people may be looking for a set mortgage payment for stability and certainty.

Household Net Worth in the Economy

Here is an article in Realtor.com magazine, a real estate trade magazine, talking about inflation and its effect on home prices.

We look forward to serving you in 2022 and beyond!