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We always think about what the new year has in store for us at this time of year! There are always top predictions for 2022, what you need to know about 2022, and don’t forget the best forecasts for the housing market in 2022. We all wish we had the impervious crystal ball.
It is speculation at best without the crystal ball, but we have rustled up some of Arizona’s best predictions for housing in 2022. So, you will want to check this out!

An outside panel of economists and housing experts are undecided on whether sales will rise or fall in 2022, as concerns over worsening affordability continue to collide with expectations for rising inventories. When asked whether sales in Arizona are projected to rise or fall in 2022 compared to 2021, 41% of participants in the latest Zillow® Home Price Expectations Survey (ZHPES) said sales would grow, 41% predict a slowdown, and 18% believe sales will remain around the same.

What Do Experts Expect From 2022's Housing Market?

From January 2021 to November 2021, 6.32 million homes sold nationwide, which is the most since 2006. Of those, an average of 5.61 million were existing homes. The forecast calls for sales of existing homes to increase a bit in 2022, drawing on recent sales performance, household formation rates, and the expectation that mortgage rates will remain relatively low (under 5%), offering attractive financing for homebuyers.

As a red-hot year in real estate has wrapped up, real estate experts are predicting prices will continue to increase in 2022- maybe not an eye-popping amount of 40% in most markets of Arizona, but we will more likely see Teen or 20% equity. Since the 30-year average is 6%)

In 2022, we might see less action from instant buyers, more commonly referred to as iBuyers. According to Zillow Research, homeowners in the Phoenix area sold almost $1.5 billion worth of homes to iBuyers last quarter, representing about 12% of all homes sold in the area. But one of the major players, Zillow Offers, is getting out of the iBuyer business, telling investors it is too risky and unpredictable—so the Zestiment is in effect worthless. (in Zillow’s own words)

Team Beery believes what it sends signals to the marketplace and iBuyers in general that that model may not be working. As of early December, Zillow said it had offloaded about 50% of the homes it bought. It doesn’t plan to flood the market with them, as they want to maximize the value they can get back.

City vs. Suburbs?

When it comes to whether to buy in Phoenix or whether to buy in the outlying areas or what’s going to trend higher, we think they will all rise pretty darn equally. But on the flip side, many workers have changed their commuting habits because of the COVID-19 pandemic. Some may not need to report to an office and seek extra square footage in the suburbs and outlying areas. So that is something worth watching.

What Do Experts Expect From 2022's Housing Market?

Perfect Storm

People living in the colder regions of the country are thinking of a warmer place to retire, and Arizona has many benefits including, top medical professionals, year-round golf, lower taxes, and tons of stuff to do.

 In the meantime, we have a demographic coming of age, deciding to get out of mom/dad’s home and start their household. They saved money while living with their folks and watched their folks go through 2007/8 and lose almost everything they had—so they are savvy, educated, and know what they want. Then, on top of all of that, folks consider moving because of Covid or other reasons, and they see Arizona as a great place to land. We don’t predict the demand letting up with all of this happening last year and continuing this year. Just drive around the valley, and you will see all the new builds going on. The builders are saying an average of 15 to 18 months to build your home because of the supply chain issues that they keep coming across—
This perfect storm of situations is why it is essential to chat with Team Beery to make sure you time everything just right! Right now is the most building we have seen throughout the Valley of the Sun since 2005-06. So if you are considering selling, now is the time to maximize your value, but we will need to balance it with what your needs are and to make sure you can find the right place to buy at the same time. Be sure to reach out!
As always, we are here to help you in any way! 
Team Beery

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