Todd Sheinin, Homespire’s Chief Operating Officer, sat down with Autumn to talk about what economists and forecasters are saying could happen with home values in 2022.
AUTUMN: What do you think is going to happen with home values in 2022?
TODD: We’re in a different place than we were 13 years ago, 14 years ago in 2008 when there was a bubble that burst. Home values were climbing rapidly, and then everything imploded. It’s more likely that things are more sustainable in the environment that we’re in because it’s a supply and demand matter. And the fact that there is no inventory — we are still having these record low inventory levels — means that there’s great demand for a home. So, when a home comes on the market, those prices are going to continue staying at that level. It’s maybe not rising at the same amount that they were before. But a lot of the forecasters that are out there really think that we’re going to be in a steady pattern on home values — again, if not even slight incremental increases — and that we’re not going. to see a sharp decline in what those values are, which is great news for everybody that’s out there that, at least as a current homeowner.
For those that are looking to buy, that’s going to be a little bit more of a challenge, is that number is going to keep pushing up, maybe making it more difficult. For the current homeowners, the sellers, it’s great news.
And for the homeowners that aren’t looking to move, you’ve now accumulated a lot of equity in the property, which means there might be some really awesome cash-out refinance opportunities available for you. You can take that to do debt consolidation, pay off credit cards and loans that you have that are maybe at a much higher interest rate than what a mortgage would be. Or if you’re looking to do improvements, other Investments, and being able to get money cheap out of your house, it’s a great thing to consider.
So, hopefully I’m right and we’ll find out this time next year. We can come back and check and see how we did. But I do believe that we’re going to see a good result on home values next year.
AUTUMN: Alright. Thank you so much, Todd
TODD: Thanks, Autumn.