Looking Ahead :
The 2022 Housing Market
RHODE ISLAND MONTHLY CAUGHT UP WITH A FEW OF THIS YEAR ’ S EXCELLENCE IN REAL ESTATE HONOREES TO KNOW WHAT TO EXPECT IN 2022 .
Similar to last year , will 2022 be a seller ’ s market and will there continue to be a shortage of available inventory for the home buyer ? “ There is still a shortage of inventory at the present time ; however , if we have learned anything in the past two years , it ’ s that the market is unpredictable . If rates begin to increase incrementally , the buyer pool will start to shrink which may create less demand . That may level the playing field for buyers and sellers but even with gradual rate increases , it can take some time .” — Amy Dixon , Keller Williams Leading Edge , amydixon . kw . com
“ It is shaping up to be the case and all projections seem to remain pointing in favor of sellers . People are nervous about finding another home if they are selling , and more and more buyers keep coming to Rhode Island as the quality of life has become paramount in location decision-making .” — Elizabeth Kirk and Lisa Schryver , Kirk / Schryver Team Residential Properties , kirk-schryver . com
“ With current inventory still quite low and demand high , it is very much still a seller ’ s market . Most single-family homes are selling for asking price or well above with most agents using the escalator clause to ensure competitive bidding for their clients .” — Carolyn Drumm , Lila Delman Compass , liladelman . com
Do you have any advice for home buyers when going through the process of finding a home and negotiating terms of the sale in 2022 ?
“ Do your financial homework well in advance . Know your budget and what you ’ re willing to compromise up front . If you don ’ t plan on living in the home you ’ re making an offer on ( and paying well over asking price ) for at least five to ten years , then walk away ... fast . Waiving inspections and appraisals are not advisable , but we are still seeing some buyers doing it to get their offer accepted .” — Steven Miller , Coldwell Banker Realty , stevenmillergroup . com
“ Be competitive , look for ways to WOW a seller with your offer . Be realistic ; reality home TV shows are just that , produced television programs made for entertainment . Most importantly , follow the guidance given by your real estate professional .” — John Moretti , Williams and Stuart Real Estate , johnmoretti . agent . willstuhub . com
Rising mortgage rates will be challenging . What best advice can you offer to a prospective buyer and / or seller ?
“ Be aware that the change in mortgage rates will impact both buyers and sellers . As a seller this is a good time to take advantage of the high demand . As a buyer you need to balance paying a higher price because of the demand with the extra cost of a mortgage at a higher rate .” — Linda Supron , Mott and Chace Sotheby ’ s International Realty , lindasupron . com
“ For buyers , review your financial situation with a mortgage lender ahead of time so that you will be fully prepared to make a good offer when you find a property you like . For sellers , right now my advice is that it will remain a sellers ’ market until the strong demand for houses is satisfied .” — Chan Lyell , Guastave White Sotheby ’ s International Realty , gustavewhite . com
“ Ask me and your lender about rates . Understand the direction the Fed is taking in 2022 . As a result , temper expectations for continued appreciation . Buyers may want to look at homes that have been on the market for a while where value can be found .”— Beth Mazor , Residential Properties , bsmhomes . com
What do you foresee for the future of the housing market post pandemic ? For example , due to remote and hybrid work options , will buyers continue to search for larger homes in the suburbs ?
“ The pandemic has shifted the concept of office work in a major way . I ’ ve seen so many young couples move to Newport from major cities — even if their company is forcing them to come back now , they ’ ve started looking for other jobs that allow them to work remotely ( and have been successful in doing so ). I think after the dust settles , we ’ ll still see a large number of companies allowing their employees to work from home .” — Jessica Chase , Gustave White Sotheby ’ s International Realty , gustavewhite . com
“ The pandemic has brought about lots of lifestyle changes for people and families . Priorities have changed . People are able to work more remotely which has allowed for longer periods of time at home . We expect to see a more hybrid work schedule to allow for fewer days in the office . Less commuting to work means people are able to live further away from the immediate work locations and are opting for larger homes , coastal homes and bigger lots .” — Bridgette Soby , Mott and Chace Sotheby ’ s International Realty , mottandchace . com
Do you think the influx of out of state buyers , fleeing the major metros , will continue ?
“ Absolutely . I see it virtually every day as Rhode Island is viewed as a ‘ bargain ’ compared to other areas of the Northeast . I work with clients from New York , Connecticut and Massachusetts mostly that want to buy here . They are buying in all categories , whether it is a beach house , multi-family for investment or a condo for easing their commute to Boston .” — John Chapski , Coldwell Banker Realty , coldwellbankerhomes . com
“ More of a lifestyle decision but yes since it appears many companies will support remote workers .” — Bill Sizeland , RE / MAX Professionals of Newport , billsizeland . com
“ This year , Rhode Island is predicted to be the sixth hottest real estate market in our nation . Coastal access and proximity , ease of life , increased workplace opportunity and our market ’ s affordability are all prevalent drivers for today ’ s out of state buyers .” — Edward Rayden , Residential Properties , agent4good . com
“ During the onset of the pandemic many were fleeing to the Ocean State from major metro areas with their new ability to work remotely but we ’ ll see more and more larger businesses requiring more ‘ in office ’ time .” — Chris Whitten , Premeer Real Estate , premeerrealestate . com
86 RHODE ISLAND MONTHLY l APRIL 2022