Will Real Estate Prices Drop in 2022? -

When the Covid 19 Hit, everyone thought the Real Estate Market will tank. It did slow down for bit till buyers were uncertain about the future. Once things started opening up Real Estate started going up. Its been going up in 2019, 2020 and 2021. Many of Real Estate Investors and home buyers are wondering “Will Real Estate Prices Drop in 2022”?

Our Research suggests Real Estate Prices will stay the same or Keep Increases in 2022.

SFGate also agrees with our analysis. There are three major factors that is driving the prices up:

Contents

People Moving from Large Cities to Near-by Suburbs

Since 2019 & 2020, Hundreds and thousands of people have moved out of major cities such as San Francisco and New York in near by Suburban towns. They were all looking for homes with home offices where they can stay home, be comfortable and still work remotely.

Historic Low Interest Rates

Rates are historic low towards end of 2021 and seem to remain similar in 2022. As a result buyers are able to qualify for larger loan amounts and are paying top dollar for homes for sale. Rates for

Low Inventory

If you go on Zillow.com or Realtor.com and search for homes, you realize that there are not many homes for sale. People who were looking to sell home are waiting as they cannot find another homes to buy due to low inventory.

Due to inventory shortages and port delays there is severe shortage of parts and materials. Hence builders are not able to build new homes either. Hence the construction has slowed down.

Conclusion

Our research indicate that Real Estate 2022 will be Sellers market and prices will remain high and will continue to creep up. Real Estate demand will remain high due to high rents, low inventory and historic low interest rates.