My 3 Predictions for the Real Estate Market in 2022
Listen in to hear my Predictions for REI in 2022!
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Can't say I am sad to see 2021 go. And I know there is a good chance you feel the same way as me. 2020 was tough, but 2021 was a year for adjustments, moving forward in a new normal, and growing in ways many of us did not expect.
And that's okay.
Sometimes we need to go through things to bring us out on the other side. Call me an optimist, but I feel that we can always learn from tough situations. And it's even better if we can use what we learned as experience for the next time a situation arises that tests us. It's not always possible, but remember to go easy on yourself as we are all works in progress.
But, now, it's time for looking forward!
I always try my best to be transparent and share what I am working on with you. In 2022, I plan on picking up another multifamily in NY (yes, deals still exist in NY). Then, I will continue to diversify my portfolio and expand into less traditional investing models. Our tenant management systemization has served us well, and now it's time to enter Phase 2 of my portfolio which means less work, more play!
So, drum roll please, here are my 3 Predictions for the 2022 Real Estate Market:
1. Rents will increase.
Lending restrictions have been tight since Spring 2020 and I don't see that changing any time soon...if ever. 😥 With high down payment and credit requirements coupled with ever increasing inflation, many previously qualified home buyers just won't be able to buy right now. That means they will continue to rent, increasing the demand. This translates to rents that will continue to rise. If you own property currently, you'll be in a good position.
2. Housing Prices will hold.
I am not expecting to see a drop in prices of homes either. The cost of EVERYTHING just seems higher right now and homes are absolutely not an exception. These prices are here to stay but I do expect the time on market to extend a little longer than they are now due to an expecting decline in the buyer's pool. I do not think it will be a major cool down so do everything you can to prepare yourself for purchasing and defining your buying criteria now so you are ready to pounce when the right deal comes along. Need help selecting your criteria? Book a call with me here.
3. Local Short Term Rentals will ?????
If I was writing this a few months ago, I would have said that my prediction is that the short term rental market in the US would start to cool off. Sure, a long weekend far away from other humans in the woods was cool for 2020, but many of us are ready to get back to traveling by way of planes and socializing. Since so many did Staycations into 2021, I would have said I see many people going back abroad in 2022, but with the Omicron spreading rapidly, many people may opt to stay close to home again. I really think that the short term rental market will depend very heavily on what happens with COVID in Q1 and Q2 of 2022.
Also, with an expected increase in rentals which could cause a housing shortage, many municipalities might re-visit their regulations on short term rentals so be ready to ride that wave if it affects a town near you.
Good news though.... Being a Landlord is still a great position to be in if you already own. If you don't own yet, it's time to get in the game ASAP.
So tell me, what's stopping you?
Have a happy New Year!