Today I’ll talk about the major market factors we’re seeing lately.
Recently, I’ve been asked when I think the Northwest Ohio real estate market will finally start to slow. If you’re contemplating buying, this question is worrisome because if you buy and the market changes, you could be in a bad place. Today I’ll share my thoughts on this topic.
2021 was a year of massive price increases, and that does not seem likely to change in 2022. 2021 was also a year of very low inventory, and we’re still low. Right now, we have less than two months of inventory. That’s the lowest ever recorded, and there still aren’t many homes coming onto the market. Not much will change the supply level shortage unless interest rates dramatically increase.
“The 2022 market looks very solid right now.”
Interest rates are at an all-time low. The Federal Reserve just announced that rates will rise in 2022. To reset and take most of the buyers out of the market, I think they’d have to go over 6%.
Meanwhile, families are being formed, people are living longer, and older owners are looking for more one-floor homes. That segment of the market is increasing, and the rate of construction is nowhere near where it has been in the past. Major corporate buyers are also purchasing as many homes as they can. Demand is therefore increasing year over year. Many homes are getting five to 15 offers.
With prices increasing, a continuing shortage of inventory, good interest rates, and the normal reasons to own a home, the 2022 market looks very solid right now.
My team and I can’t wait to help more people buy, sell, manage, and grow their real estate holdings in 2022. If you need help, just give us a call at (419) 466-7653. We look forward to hearing from you.
