Hello Valley Village Homeowners,
Happy New Year! It’s that time again, when industry people put out their predictions for the housing market in the new year.
We have several indicators that are pointing to an approaching cooling of the housing market. The FED, using one of the few tools available to them to attempt to curb inflation, announced that they anticipate raising the interest rate 3 times in 2022. Additionally, a recent report by ATTOM Data Solutions revealed that the average required down payment has increased over the past year, to the highest level since 2005. When buyers have to put more cash down AND the cost of borrowing money increases, these factors are likely to level off home prices.
The National Association of Realtors (NAR) released their forecast stating that we will likely see a normalization of the housing market in 2022. Stating “…the housing market is unlikely to repeat this past year’s dizzying heights...” and that “For 2022, the group of experts predicts that annual median home prices will increase 5.7% and inflation will rise 4%. Overall, survey participants believe we’ll see the housing market and broader economy normalize next year”. You can read the full article here: https://bit.ly/NAR2022
Shifting our attention to the local market, since we are now in January, you will find my 4th quarter recap for home sales in VALLEY VILLAGE enclosed with this letter, along with my market health report. These tools will help you understand the current market status and will give you a general idea of your home’s market value. You can get more tailored home value information for your property by scanning the QR code below with your smart phone camera!
Warm regards,
Luke
