La Quinta’s Real Estate Outlook for 2022 – The real estate market during 2020 and 2021 has been record-breaking, and if you have tried purchasing a home in the Desert during this time, it could be described as frustrating! Many buyers have missed out by being outbid or too many offers on one property.
Will our 2022 market be a continuation of the previous two years? Maybe, but maybe not.
2022 has a few factors coming into play that may change the landscape of our real estate market:
After years of 2% interest rates, interest rates are on the rise and climbing. “Dr. Lawrence Yun, the National Association of REALTORS® chief economist, expects that the 30-year fixed mortgage rate will increase to 3.5% by the end of 2022 as the Fed raises interest rates to control inflation. Those buyers who have been considering purchasing a home this year might want to consider doing it sooner than later. Although the increase in rates will still leave them at historic lows, the rate hike could affect the purchasing power of some buyers.”
Although that is still a great rate, it may turn off buyers who are used to lower interest rates.
Inventory may still be a problem in 2022, and we may still be a seller’s market for the following year. However, it may not be quite as “frustrating” as the previous two years; buyers will need to have everything lined up when submitting an offer as not to be passed up if you don’t.
Home prices will continue to increase as long as the inventory is low; however, perhaps not quite as fast as we have seen previously. If interest rates go up too fast and too high, buyers may hold off buying. If that is the case, we could see a reduction in home prices.
The Desert will always be a great place to buy a home, whether it’s your primary home or Second/Vacation home. We have what no other area has – sunshine and golf courses!
If you would like to discuss the real estate market in the La Quinta area and how it may impact your buying or seller, give me a call! I’d love to talk to you about it!