My state of the real estate market address
The post-pandemic future of Covid and real estate in 2022 is uncertain. No one can definitely predict what’s going to happen this year, but as a 15-year winner and recipient of the 2022 Five Star Professional Real Estate Agent award in Kansas City and Overland Park, I want to address the 3 most important things for sure.
The top 3 things that matter for home sellers and home buyers
- Inventory
- Interest rates
- Prices
Real estate in 2022
Let’s get down to it. There is always speculation, but in my opinion, the only things that matter in real estate start with inventory. If I could just get those baby boomers moving on down the road, it would open up a whole lot of inventory. But boomers are typically stubborn and if they’re not ready, they are not going anywhere. I will continue to try by educating them on the benefits of downsizing and selling their homes while they still can.
Is there even any housing inventory out there?
As in previous years, there is still such a lack of inventory, so I predict buyers will be in the same situation when trying to buy real estate in 2022. For every house that comes on the market, there are at least 10 if not 50 buyers (depending on the price range) who want to buy it.
For example, I had a cute little 50-year-old home that had never had any updates. In other words, picture grandma’s house if you will. It was extremely well maintained but had lots of wallpaper, old, stained carpet, heavy drapes, and an outdated kitchen with mismatched appliances and original bathrooms with colorful tile. But it also was in a great neighborhood, had virgin hardwood floors under the carpet, a nice big eat-in kitchen, a spacious newer deck that overlooked the fenced backyard, and came with an older washer and dryer! After looking at the comparable houses that had recently sold in that neighborhood, we priced it at $215,000 which is exactly where we felt it was worth. I had over 70 showings, over 20 offers and it sold for $254,000. It sold for $39,000 over the asking price, had no inspections, and closed in 10 days.
My point being, yes there is inventory but when you have 70 showings on one house, there are obviously more buyers than houses for sale.
Interest rates
It’s a well-known fact that The Federal Reserve is expected to raise mortgage interest rates several times in 2022. It is predicted that interest rates will rise to at least 3.5% by year-end. Now granted, that’s not a lot considering I bought a house in the ’80s at 16.75%.
But for today’s buyers, for rates to go up even half a point can affect what they qualify for when buying a home. As a result, even at a 3.5% interest rate, that shouldn’t keep buyers from wanting to get into a house. But those carry-over buyers that didn’t get a house in 2021, will find their buying power at a higher interest rate will give them less to spend. That is unless they were able to save additional money in 2021.
Another real-life situation is I have some buyers that wrote a new construction contract in January of 2021. Well, needless to say, their home was supposed to be finished and closed in December. However, due to supply shortages, delivery issues, and now with so many workers out with Covid, the best guess for completion is now mid-April. And that date is a moving target.
Prices
Oh, those prices…what will buyers be willing to pay in 2022? WIT – whatever it takes. Buyers want what they want and many are sick and tired of not being able to become homeowners.
What are their options? Potential homebuyers are sick and tired of paying rent which continues to increase. Landlords know they are in the driver’s seat and can charge overinflated prices for rent because they can. The average rent increases 10% a year. I am working with some buyers who are paying top dollar for a rental house at $2,400 a month. That’s almost $30,000 a year for rent. They told me they are willing to pay $30,000 over the asking price for a house since that’s what they will be forking out in the next year if they continue to have to pay rent.
In conclusion
Real estate in 2022 will be a big year for many people. It’s my belief, after 2 years of Covid, people are desiring to be closer to their families so inventory may be a bit higher than in 2021. I already have many clients who have told me they will be selling this year to move closer to family.
My best guess is we will remain in a seller’s market throughout 2022. Buyers will continue to make multiple offers and pay way over the asking price for at least another year.
What are your options?
If you’re selling…
If you’re considering selling your home in 2022 you should be educated and know how real estate has changed. Have a plan to sell. Don’t call one of those companies who will sell your house with no showings or whatever they tell you to make you bite. All of those companies that pop up when there is an opportunity in the marketplace should be thoroughly scrutinized.
I’ve been selling real estate for 35 years and there have been so many gimmick and pop-up companies over the years. At the end of the day, real estate has existed well over 100 years and I tell my sellers that no one will get them more money than I will with 35 years of negotiating skills. Real estate lessons come from experience. My services will pay for themselves.
Would you like to know the real estate activity in your neighborhood? I have a great tool for that. You can simply put in your address and it immediately pulls up your subdivision so you can take a closer look at what houses like yours are selling for.
Or if you want to schedule a FREE in-person market evaluation, please call or text me at (913) 515-3250 or contact me here. I’ll be happy to stop by and give you a more accurate value of what you can expect to sell for in this market. While I’m there, you can also get all of your questions about your house, the market, or anything else that’s on your mind. I promise you’ll be better informed when I leave than you were when I arrived. People tell me all the time, “Oh, I didn’t know that.” Real estate changes daily. Don’t leave it to chance.
If you’re buying…
If you’re buying in 2022, reach out here for a free buyer consultation or call or text me at (913) 515-3250. It’s important to know upfront, how things have changed for home buyers, and what you need to do to be a buyer in today’s market.
You can check out today’s new listings either below or in the sidebar. Call or text me at (913) 515-3250 to see inside one of these homes. I AM NEVER TOO BUSY to show you a house. Real estate is my main hustle after 35 years! It’s why I’ve been a Five Star Professional Real Estate Agent for the last 15 consecutive years. Everything else I do is merely bells and whistles to enhance your experience!
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Lot Size8,878 sqft
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Home Size2,885 sqft
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Beds4 Beds
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Baths3 Baths
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Year Built1999
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Days on Market1
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Lot Size9,100 sqft
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Home Size2,054 sqft
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Beds4 Beds
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Baths2 Baths
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Year Built1964
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Days on Market2
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Lot Size2,841 sqft
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Home Size2,303 sqft
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Beds4 Beds
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Baths2 Baths
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Year Built2005
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Days on Market2
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Lot Size43,351 sqft
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Home Size838 sqft
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Beds1 Bed
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Baths1 Bath
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Year Built1972
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Days on Market2
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Lot Size10,921 sqft
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Home Size2,840 sqft
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Beds5 Beds
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Baths2 Baths
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Year Built1969
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Days on Market2
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Lot Size11,993 sqft
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Home Size1,964 sqft
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Beds4 Beds
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Baths3 Baths
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Year Built1958
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Days on Market2
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Lot Size10,934 sqft
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Home Size3,855 sqft
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Beds4 Beds
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Baths4 Baths
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Year Built1999
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Days on Market2
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Lot Size
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Home Size2,868 sqft
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Beds3 Beds
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Baths3 Baths
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Year Built1963
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Days on Market2
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Lot Size11,640 sqft
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Home Size3,067 sqft
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Beds4 Beds
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Baths4 Baths
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Year Built2022
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Days on Market2
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Lot Size10,019 sqft
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Home Size1,848 sqft
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Beds3 Beds
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Baths2 Baths
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Year Built1968
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Days on Market3
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Lot Size10,890 sqft
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Home Size2,839 sqft
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Beds4 Beds
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Baths2 Baths
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Year Built1981
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Days on Market3
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Lot Size6,099 sqft
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Home Size2,100 sqft
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Beds4 Beds
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Baths2 Baths
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Year Built1998
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Days on Market3
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Lot Size
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Home Size1,400 sqft
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Beds3 Beds
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Baths2 Baths
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Year Built1986
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Days on Market4
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Lot Size10,032 sqft
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Home Size2,081 sqft
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Beds3 Beds
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Baths2 Baths
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Year Built1991
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Days on Market4
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Lot Size12,197 sqft
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Home Size1,680 sqft
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Beds4 Beds
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Baths2 Baths
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Year Built1960
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Days on Market4
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Lot Size10,668 sqft
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Home Size3,347 sqft
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Beds5 Beds
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Baths3 Baths
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Year Built1994
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Days on Market4
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Lot Size5,389 sqft
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Home Size2,109 sqft
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Beds2 Beds
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Baths3 Baths
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Year Built1999
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Days on Market4
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Lot Size10,847 sqft
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Home Size2,902 sqft
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Beds4 Beds
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Baths2 Baths
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Year Built1996
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Days on Market5
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(all data current as of
6/2/2023)
Listing information deemed reliable but not guaranteed. Read full disclaimer.