Ready for 2022
Allen Tate President & CEO Pat Riley reflects on a great year – and looks ahead
The New Year is always a good time to look back on the previous year, and predict what will carry forward.
For Allen Tate Companies President and CEO Pat Riley, 2021 was a good year – in fact, the best year in the history of the company, and he’s bullish that 2022 will remain strong for residential real estate.
“Our year-end numbers are still being finalized, but we expect more than $6.69 billion in closed sales volume. That’s a substantial increase over 2020, when we set a record with $6.15 billion,” Riley said in the January edition of Carolinas Market Update.
Allen Tate expects to close more than 19,000 transactions for 2021, and listed nearly 9,600 homes for sale – pretty similar to 2020.
What can we expect, then, for 2022?
Riley sees interest rates starting to rise, to slow down inflation. Super-low rates under 3 and 4 percent are likely behind us, but interest rates should still be desirable through 2022. First-time buyers should find a way to borrow down payment funds while rates are still affordable.
Appreciation of homes will also recede. 2021 ended with appreciation rates above 13 percent in the markets Allen Tate serves. Riley expects that 2022 will see average appreciation rates down to 8 to 9 percent.
If you’re looking to buy in 2022, pack your patience. Listing inventory will still remain tight as Baby Boomers continue to sit tight and new construction wrestles with broken supply chains, labor issues and land shortages. Investors will continue to grab desirable properties to rent or flip.
All things considered, it’s still a great time to buy – if you want to live in the Carolinas.
“Even with significant appreciation, homes in the Carolinas remain a bargain compared to most of America, thanks to average sale prices and reasonable tax rates,” Riley said.
Carolinas Market Update is targeted to consumers in the Charlotte, Triad, Research Triangle, High Country, Highlands/Cashiers and Upstate S.C. regions. It is produced every other month by the Allen Tate Companies and features information, statistics, trends, and predictions about the real estate market in North and South Carolina.