The 2021 Housing Market looks to be in a big bubble. Home prices are at their highest level of all-times. So is home price appreciation. But Redfin does not expect that to continue in 2022. In this video I discuss the 3 MOST INTERERSTING Predictions that Redfin is making.
Redfin 2022 Predictions: https://www.redfin.com/news/housing-market-predictions-2022/
1) Home Price Growth will be at 3% in 2022. Due to higher mortgage rates and a decline in real estate investor demand, home price growth will slow considerably in 2022 according to Redfin. 3% growth would be below the long-term average and likely below inflation levels.
2) Migration Trend Reversal. While the 2021 Housing Market was dominated by hot Sun Belt markets such as Austin, Phoenix, and Atlanta, don’t expect these cities to fare as well in 2022. Redfin predicts that homebuying demand will decline across these cities, while increasing in affordable Midwest/Northeast cities such as Columbus, Indianapolis, and Harrisburg.
3) iBuyer Decline. 2021 was the Year of the iBuyer – companies such as Zillow, Opendoor, and Offerpad using institutional capital to get into the home-flipping business. Yet Redfin thinks we might have already past peak iBuying and that in 2022 these sales will decline significantly. Cities like Phoenix, Charlotte, and Atlanta could be most negatively impacted by a decline in iBuying.
Ultimately Redfin believes that the 2022 Housing Market Forecast will be for a more balanced market. Price growth will moderate considerably, and perhaps it will go negative (my speculation) in cities such as Austin, Phoenix, or Dallas. Many of the cities that lost people in 2021 could gain home buyers in 2022, and vice versa. And we will also likely see a decline in investor presence, particularly iBuyers like Opendoor and Offerpad.
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0:00 TOP 3 Predictions from Redfin
1:05 More Balanced Housing Market in 2022
1:57 Price Appreciation will be…3%!?
3:37 Loser Markets in 2022
4:47 Columbus and Indianapolis are Winners?
5:33 Austin v. Columbus: Where would you Buy?
6:26 Sun Belt Affordability is GONE!
7:04 Redfin Going on Record is a Big Deal!
7:50 Decline in iBuyers in 2022?
9:12 Most Impacted Cities from iBuying
10:28 The Moral of the Story: AVOID SUN BELT!
11:20 Make Sure to DO THIS!
#Redfin #HousingMarket #HousingCrash