Happy New Year!

A new year often have many of us feeling optimistic and hopeful. We may feel refreshed and ready to conquer any upcoming challenges, or perhaps we may feel a bit exhausted from a wild ride in the previous year.

I’m somewhere in between. Both professionally and personally… 2021 had many memorable moments. Some I will cherish and others are welcome to just fade away from my memory!

January offers us the opportunity for a mental reset. In order to do that, we must first reflect on past experiences and acknowledge how those moments have helped us to adjust or grow.

This past year, I found myself frequently asking my children to pause, take a deep breath, and be grateful for today. I will be continuing this mindfulness practice as we move forward!

2021 Real Estate Market Review

Anyone who jumped into the real estate market as either a Buyer or Seller in 2021 knows what an atypical year it was! In many markets, extremely low housing inventory and increased buyer demand created a recipe for a Strong Sellers Market.

Here are a few observations on what I saw this past year:

1. The pandemic and quarantine experiences introduced new home needs for many people. Home buyers found themselves needing more space, home offices, and larger backyards.

2. Because many businesses shifted to allow employees to work from home, commute times were no longer a major item on buyer’s ‘Must Have’ lists. Buyers expanded their search areas wider than they would have in the past.

3. A surge in home buyers along with low inventory created high traffic and multiple offer situations. Houses in Hot neighborhoods were under contract within the first few days of listing and were selling for over the asking prices.

4. Competing buyers had to get creative in order to stand out. Aside from offering well over asking prices… buyers were waiving/capping some (if not all) of their contingencies (ie. inspections and appraisals) and offering to cover some of the seller’s expenses/closing costs.

5. With mortgage rates hovering at historic lows, home buyers had more buying power, which allowed them to push those prices while staying within their budgets.

Here are some Market Snapshots showing 2021 Statistics for some of the communities I serve:

Scroll to see the stats for Collingswood, Haddonfield, and a few areas in Philadelphia. Interested in the data for another area? Email Me and I’ll be happy to send you the information!

2022 Expectations

We of course do not have a crystal ball to predict the future, but in looking at some indicators, we can set our expectations for how the 2022 real estate market might pan out.

1. Mortgage Interest Rates are expected to begin a slow climb upward over the coming months. Even with the uptick, the rates are still very favorable for those looking to make a purchase!

2. Unfortunately, the inventory is not expected to pick up dramatically. I hope to see a little bit of a boost for all of my exhausted buyers, but in most of the neighborhoods I primarily serve, we are incredibly depleted. It will take a big shift to tilt us back into a balanced market. This inventory shortage will keep us in a Sellers Market.

3. The home values are expected to continue to climb, but possibly at a slower rate from what we saw over the past 2 years.

4. There continues to be supply chain issues, which will continue to create challenges for new construction, investors, and those planning home renovations.

Final Thought…

The real estate market is a Roller Coaster! A Home Coaster if you will (yep, I know that’s a cheesy plug!). It’s important to stay in tune with the current real estate market. If you are considering a purchase, a sale, or simply wanting to stay educated on your local market and the equity in your property… having a trusted real estate advisor is just as important as having a trusted accountant/attorney/physician.

Complete the form below if you are looking to buy, sell, or simply stay informed on your market!

CHEERS TO AN AMAZING 2022!