Here’s what we can predict about 2022 by looking at current trends.
Recently, we made a video looking back on the real estate market of 2021. Today we want to switch gears and look forward to the future. Based on current trends, what will our market look like in 2022?
According to Freddie Mac, real estate prices in Knoxville were up 27.5% in August of 2021. This is the largest year-over-year increase ever recorded. It’s unlikely that we’ll sustain this level of growth, but Goldman Sachs predicts that our area will see prices increase another 16% by the end of 2022.
A recent article by Freddie Mac claims that Knoxville will need 40,000 more homes over the next 30 years. Our area is expanding rapidly, and it’s already probably bigger than you think. Recent estimates suggest our metropolitan area has a population of about 900,000, and it’s only going up. A comparable city would be Charleston, South Carolina. If you’re considering purchasing real estate in Knoxville, this is something to think about.
“The Knoxville area is expanding rapidly.”
Meanwhile, interest rates are projected to increase, but not by too much. Our economy is currently strong, and while nothing is certain, it looks like 2022 will be another good year for real estate. Just don’t expect prices to increase by another 25%.
If you have any questions about today’s video, please give us a call or shoot us an email. We would love to speak to you.
