What Will the 2022 Market Be Like?

Today I want to share my five predictions for the 2022 real estate market.

As we enter 2022, one of the things that I'm often asked is “What is the real estate market going to look like this year?” I don't have a crystal ball, but I do have five predictions that I wanted to share:

1. Suburbs will continue to experience record-setting price appreciation. Because working from home is here to stay, buyers are less sensitive to commute times and are willing to live a bit further out and take advantage of benefits like more space and lower prices.

2. Having more space will continue to be on buyers’ preference lists. Tiny homes are not the rage these days. Whether you want space for a home office or a family wanting more space for at-home activities, this is a trend that will continue.

3. Non-luxury rents will rise. In the last few years, D.C. has had an explosion of luxury apartments and there's way more supply than demand. However, for standard properties, rents are going to rise to pre-pandemic levels. 

4. Interest rates will rise. I’ve been wrong on this point in previous years, but I think the Federal Reserve is definitely going to make changes now. Hopefully, they won’t rise too much, but I don't think that rising interest rates will have a huge impact on home prices this year.

5. Affordability in D.C. is going down. This will be an even bigger challenge for prospective buyers than ever before. I think affordability will play a bigger role in buyers’ decisions to leave the district.

These are my predictions for 2022. If you have any questions, feel free to reach out via phone or email. I look forward to hearing from you.