As the first week of 2022 comes to an end, let’s take a moment to reflect and recap 2021 what The Nickley Group was able to accomplish, the Florida real estate market as a whole, and what we are expecting to see in 2022. In 2021, TNG was able to help 850 families buy and sell a home here in Central Florida. We truly are so grateful to every single one of our past clients, referral partners, and friends who helped make this a reality. Thank you for your continued support and trust; it means the world to us! The 2021 Orlando real estate market was one of the wildest rides. We didn’t enter 2021 thinking we’d experience and accomplish what we did. But all in all, it was a fantastic year for real estate.
Watch Tom’s 2022 Real Estate Market Update
2022 Real Estate Interest rates
If you have been watching our videos for the last few months, you may already know that in 2021 we saw interest rates hit an all-time low. Most rates were below 3%, which is something we have never seen before. However, in 2022 and 2023, the federal government is to raise interest rates. They announced in December 2021 that they would be stopping their bond buyback program in the upcoming year. With the stop of that program, increased interest rates are inevitable. The federal government stated that they will be increasing rates three times in 2022 and 2023. While the rise of interest rates is not a great thing, the silver lining is, it’s increasing from an all-time low. Meaning, even though they are on the rise, they will still be relatively low compared to historical rates. We speculate that rates will fluctuate from low to high 3% throughout 2022.
Sales of Homes
The other area we saw skyrocket in 2021 was the sale of homes in Central Florida. From 2020 to 2021, sales have increased by 23%. In 2020 we saw 37,000 sell in central Florida; that number in 2021 increased to 45,000 homes. Ultra-low interest rates, more people than ever relocating to Central Flordia, and more first-time home buyers entering the market drove this increase. In 2022 we are expecting to see this trend continue. While we don’t think we will have another record-breaking year, we believe sales will stay strong. We are also expecting to see more listings hit the market in 2022. Now is a really good time to sell and capitalize on the increase in the prices of homes.
Prices of Homes
From January 2021 to the end of December 2021, we saw an increase in home prices by 20%. This is something that Tom hasn’t seen before. In normal situations, the increase in home prices isn’t a great thing. But considering how the last few years have been anything but normal, we think it was a healthy shift. It was caused by all the right factors, interest rates, and supply & demand.
In one year, the average equity in a Central Florida home increased from $275,000 in January 2021 to $330,000 in December 2021. We do not expect prices to appreciate in 2022 as they did in 2021. But we hope to see a healthy appreciation on home prices in 2022, at about 8-14%, making it an excellent time to invest for those looking to buy now.
Looking Forward to the 2022 Real Estate Market
We don’t want you to miss out on this great opportunity to buy or sell. It will be another great year in the Central Florida market. Be sure to call our team at 407-906-2456 to set up a free consultation. We can help answer any questions you may have regarding homeownership. We want to help you fulfill your 2022 real estate goals.