What’s Expected for the housing market in Queens and Long Island in 2022?

Inventory Shortage: As we can see from our local stats the number of homes for sale is down from previous years. It is felt this could take several years for these levels to normalize nationally.

Low-Interest Rates: Even though the Federal Reserve has plans to increase interest rates three times this year, industry experts still expect mortgage Interest rates to end 2022 no higher than a low 4% range. These are still historically low rates today’s buyers can take advantage of with 15 – 30 year fixed rate loans rather than face uncertain rent increases year after year. (Rents have risen about 13% nationally this year).

Home Appreciation: As more homeowners who have postponed a move now decide to put their home on the market, there will be more homes in competition. This will help keep home price appreciation

In the single-digit range of +8-9% nationally. Certain high-demand cities could see double-digit appreciation because of lack of homes for sale.

Continued Movement Based on Jobs, Cost of Living, Other Lifestyle Needs: Most homeowners may have felt their home suited their needs but after the Pandemic many have seen they are “mishoused” . Some need to make a move whether for more space, to take advantage of lower-cost options now they have remote or hybrid work schedules, or to be nearer friends and loved ones which the isolation of the pandemic highlighted.

Should You Sell: This is a great time to sell and many homeowners have seen their equity increase dramatically over the past several years. This gives you options to trade up to a larger home, buy a second home or investment property to create retirement income or pay off certain loans. The home prices will increase over the next year or two but appreciation will moderate as interest rates rise and more homes become available for sale. So those selling now may be selling at the top of the market.

Should You Buy: These rates will not be around forever and what an opportunity to have low payments versus the unknown rent increases that keep many from accumulating wealth.

Contact us at Helen.keit@kw.com or 917-887-4924 for a free Professional Equity Assessment Report for your home.