Spectator February 2022

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By Bill SohlThe number one question I am asked is “What willhappen to the housing market in 2022?”. Numerousarticles have been written and expert opinions givenregarding the 2022 housing market. Although predictionsvary, most agree home prices will continue to riseduring 2022. Despite the agreement on increases,there are different schools of thought concerning therate of appreciation. For instance, Realtor.com projectsSouth Florida home prices will increase by 6% during2022. In contrast, Zillow predicts home prices couldrise by 15%. The Florida Realtors Association believesthe below factors will have the greatest effect on homevalue appreciation in South Florida during 2022.• Increase in Inventory• Increase in mortgage interest rates• New developments hitting the marketDuring normal times an increase in the inventory ofhomes cools prices. However, our inventory is criticallylow and it will take time to rebuild an inventory able toslow price increases. At the time of writing this article,there are many communities in Coral Springs andParkland with zero homes for sale. Although manyexperts are predicting homeowners will flood the marketwith houses, as they try to capitalize on this strongseller's market, I do not feel enough of them will thisyear. There are many reasons why homeowners arenot selling. Thus, I believe the lack of inventory willremain one of the biggest issues homebuyers will facethis year and it will fuel continued jumps in homevalues.Traditionally, rising interest rates negatively affecthome prices. An increase in rates reduce the amountbuyers can afford thereby causing home prices todecline. The majority of Bill Sohl Luxury Homes Team’stransactions in 2021 were cash purchases withoutfinancing. The same is true for many real estate transactionsin our area. Simply put, our current real estatemarket is cash-supported and not predominatelydependent on borrowed money. Most individuals movinghere are coming from states where home prices aresubstantially higher allowing them to purchase a homewith cash. Since this is a cash-driven market, it is notunreasonable to suggest rising interest rates might notinfluence our home values in 2022 as much as predicted.Although there are new construction projects offeringsingle-family homes in other parts of South Florida,Coral Springs does not have any and the projects inParkland are almost sold out. Most individuals movinghere are looking for space, yards for the children to play,private pools, and privacy. Therefore, the new multistory/multi-familyprojects are not going to satisfy thedemand for single-family homes. Our lack of inventoryin Coral Springs/Parkland is not going to be solved bynew construction in 2022.In closing, home prices are going to see strong appreciationfor most of the year. For this reason, it really is agreat time to sell. As always, please feel free to contactme at any time with your questions and requests formore information.Bill Sohl & Associateswww.BillSohlSellsParkland.com954-655-5097See ad on opposite page
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Spectator February 2022

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