There are three reasons our market will stay strong into 2022.
Here are the three reasons why I believe the real estate market will stay strong into 2022:
1. Historically low inventory. Compared to 2011, which had 9.5 months’ worth of inventory, we only currently have one month’s worth. For us to be considered a buyer’s market, we’d need over eight months’ worth of supply. As you can see, we’ll remain a seller’s market well into 2022.
"With the market strong and rates still low, now’s the time to move."
2. Historically low interest rates. These interest rates are fueling first-time buyers such as millennials. Since this is the largest demographic, we don’t see the market slowing down anytime soon. What if interest rates rose? If you were to get a 3% interest rate right now on an $800,000 house, your monthly mortgage payment would be about $4,200 (along with property taxes and insurance). If rates rose to 4%, you’d only be able to buy a $730,000 house with that same $4,200 monthly payment. Even though prices are strong, these low rates are offsetting your monthly payment, thereby making it a great time to buy.
3. Out of the last five recessions, the real estate market has only been affected twice. Both times were in cases of major economic crises. One, as we all remember, was the 2008 crash. The other was the savings and loan crisis back in the 1990s. During the other three recessions, the market actually continued to appreciate.
With the market strong and rates still low, now’s the time to move. If you’d like to take advantage of our current market or have any real estate questions at all, don’t hesitate to reach out to me. I’d love to help.
Let BLG be your trusted agent and advisor for buying, selling or investing in Conejo Valley real estate.