Despite the many challenges we have faced in the last few years and uncertainty from recent global geopolitical events, I don’t anticipate the demand decreasing. In fact, I anticipate the market outlook will look pretty similar to last month’s and will remain stable over the next few months.
As for prices, I again do not expect much to change. Resale closing price appreciation may soften slightly, but basic supply and demand again points to more of the same. With new homes, dramatic increases in land and material costs will mean that price appreciation in that sector will continue and builders and buyers will have to continue to adapt.
We are in the heart of a historic time for our local luxury market. There were more homes sold over $5 million in 2021 than any other year in our history. Forty-six homes sold over $5 million in 2021, marking a nearly 60 percent jump from 2020 alone.
The coming year brings many opportunities and challenges for master-planned communities. The housing market is still strong and there is demand for new housing.
What will rising interest rates mean to you if you are considering purchasing a home or doing a cash-out refinance loan?
Renewed interest is revitalizing some of our older luxury communities, such as Spanish Trail, Canyon Gate, The Fountains and areas in the historic district.
Recently, the Federal Reserve raised interest rates by a quarter point. With up to six more rate increases earmarked through the end of the year, homeowners with an adjustable rate mortgage (ARM) will likely begin scrambling to convert to fixed-rate loans, while new homebuyers will jump on purchasing a home sooner rather than later to lock-in lower loan rates. Here are a few things homeowners should know about fixed-rates v. ARM.
Inventory supply will continue to be a challenge through 2022. Hybrids continue to be in high demand with gas prices continuing to climb nationally. Trading a vehicle in today’s market, gives the consumer the ability to cash out on the equity derived from higher than usual used car values.
The pandemic tested the strides of record women-owned businesses started during the last decade. Today, women-owned businesses are powering our economy’s historic recovery and delivering some of the strongest rates of job creation and new business applications in American history.