One of the most frequently asked questions is when will the real estate market cool down?
That’s a hard question since it depends on so many factors, like local job markets, new construction costs, supply chain issues, etc.
But one factor that will likely change in 2022 that could definitely help cool down the market is rising interest rates.
Many experts are predicting interest rates increasing to around 4% by the end of 2022.
Not a huge increase, true, but a big jump from what we are seeing today, and what has been holding for a good many years now.
That kind of jump in interest rates will knock some buyers out of the market and put a damper on the rate of property appreciation.
In other words, it will put a damper on demand.
But will they actually go up in 2022? We shall see!!!
Happy New Year!!!
David Baker, MBA, CRS, GRI, e-PRO, SFR