House Market 2022

It’s Brandy Lee, local realtor here in the Nashville, Franklin, Tennessee area.

I’m here bringing you the House the Market? update.

3 things to expect for the rest of 2022 and how you can BENEFIT from it.

1. Inflation is at 8%
Expect it will continue to go up. The core issue with inflation is fuel supply. This problem has not been solved. As long as it is unresolved expect inflation to continue and increase.

2. Home Market Value

Many people are asking, “Is it going to go backwards? Is the home market going to correct itself? Is the bubble going to pop?”
I think the answer is no.

We’re at a 34% Home Value Appreciation rise for the last 12 months in our area.
I would expect that is going to continue or be somewhere around that same pace for the rest of
2022 – at least in this area.

#3 – Interest Rates at 5.5%+

Is the federal Reserve going to be able to slow down inflation by raising rates?
The answer I think is no.

The Federal Reserve has announced that they’re going to raise interest rates 6 more times in 2022.
That’s the best that they can do to help slow inflation down.

There are other economic factors going on where things just are not in place to help slow inflation down yet.
The Federal Reserve is going to give it their best shot and hopefully the raises will slow it down a little bit.

At any rate, just expect that the interest rates are going to continue to rise.

In spite of this, there’s factors still continuing to push home value up.

The value of a home these days because of COVID, because of staying in place, people needing to feel safe and other things,
home values just are not going to go backwards.

They’re not going to correct themselves, in my opinion.

House Market 2022 Tip:
Here’s three ways to benefit from the current economic hardship.

#1 Invest for long term ROI.

#2 Maximize Square Footage
Right now we’re dealing with housing compression. More people are needing to move into a single property.
If you have any square footage in your home that hasn’t been finished out consider finishing it. This is the biggest way to increase the value of your home.

#3 Smart Use of Space
Home buyers are seeking homes that have space to work in. Many buyers have to get creative when considering the space in a home. If the home does not have an extra bedroom to be used as an office then they need another space that can be converted into one.

Some examples of this is converting a mudroom into an office. Attic space may be a possibility as well as any unfinished basement space. Other areas to consider may be part of a garage, the formal dining room or even a large closet. Many buyers today have at least two people that are working remotely from home.

The housing compression situation is raising the value of homes that can accommodate more people. A premium value is on homes that have an apartment basement, an in-law suite or a guest house whether it is attached or not.
about the space in your home.

If you’d like an evaluation of your home for future planning book your appointment or call us today: 615-334-0120