If you’ve been investing in residential real estate during 2021, you know just how volatile the market has been. It has climbed so fast that it has broken records and set high marks that many people never thought they would see. Homes have become worth far more than they were just years or even months ago.
Now, at the beginning of 2022, there has been some talk that mortgage rates are going to begin climbing. This has led to some speculation that home values are about to fall. People won’t be able to pay as much with the higher rates, or it will push potential buyers out of the market entirely. Is this going to happen?
Nothing is certain, but a substantial price drop seems unlikely
As is always true with real estate values, you can’t be one hundred percent certain what the market is going to do in the future. However, speculation right now is that home values are simply going to keep climbing throughout 2022. This is poised to happen despite the changes in mortgage rates and things of this nature.
This is not a guarantee that 2022 is going to break records in the same way that last year did. The rate of growth could be slower, but it is still projected to be growth. Things are not going to reverse, even if the rate of climb isn’t as great as it has been in the past. This is good for those who have seen their home values go up dramatically and don’t want to lose that value, and it may also help you if you’re trying to determine how you should invest for the years to come.
As you work through this process, always be sure you know all about your legal options. Protecting your financial future means always being careful and making sure that you have experienced guidance.