State of the Market, Spring 2022

Look, I’m a real estate agent, not a lender. I don’t work for the bank. I direct you to people who do. My knowledge is limited, but my intuition is pretty dang good. Like I said in my market predictions at the beginning of the year, I don’t have a crystal ball to tell me what the future holds magically. Everything that’s happened over the last few years has been a complete roller coaster, and even if we could’ve predicted it, we didn’t even try.

But we are a quarter of the way into the year, and while the economy has gotten even crazier and the market is still pretty hot, there are signs a shift is coming, so here are my thoughts on what’s to come.

I still think prices will remain high, interest rates are obviously on the rise, and value will hold steady. However, things are cooling down. We’ve had one of the hottest markets here in Tucson over the last few years, but it’s finally cooling off. Houses stay on the market for a week instead of a day, and specific areas of town are seeing small decreases in price. I’ve seen more three beds, two baths homes for under $300k than I’ve seen all year in the last month.

Additionally, these rising interest rates will not be sustainable for everyone. While I still attest that rates aren’t as bad as before, higher is well higher, and more is more. The near 2% increase since the end of last year will take away a lot of buying power for a lot of people. Folks will have to take a step back and save some more money or downgrade their wishlists to get a loan. While this sounds discouraging, it does lend a bright side — a less saturated market, hopefully bringing some balance back to real estate.

If you don’t know where you stand in this, don’t worry! Let’s talk obligation-free. I work with some fantastic lenders who will be able to tell you where you stand, your options, and what you need to achieve your goals. To schedule a call, click here.