The 2022 Housing Market - Where will we be?

Although rising prices may be applauded by sellers, in a higher interest world, how high is too high?  With higher interest rates, affordability is a real factor.  New buyers may simply be priced out, unable to purchase a home that fits their needs. True, everyone needs to live somewhere - and buyers will have to compromise - but that may not be in the form of buying a home that does not meet their needs.  Sellers in Westchester, where taxes are high (compared with nearby Connecticut), must be mindful of the conundrum facing buyers.  Sellers whose homes have deferred maintenance must consider the difficulty buyers unfamiliar with home ownership may face in doing renovations, particularly in light of supply chain disruptions and labor shortages.  Pricing should reflect these realities.  Buyers are savvy and understand that a home with rotting trim, old bathrooms, an original kitchen from the 1980’s, may be difficult to address expeditiously; even in a "hot" market buyers will need to be incentivized to buy a home in need of repair.  Sellers clinging to a premium price because of a strong market going into 2022, may find themselves left holding out as the market potentially shifts later in 2022.  This strategy may be especially perilous with interest rates on the rise.  How to thread the pricing needle and determine what repairs to make before listing requires careful balancing and analysis.  At the Usha Subramaniam Team we carefully analyze pricing strategies, trends and market data in collaboration with our sellers ensuring an effective launch.