2022 Mid-Year Market Forecast

Dated: July 21 2022

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2022 Mid-Year Market Forecast

The real estate market has been interesting for the past few years to say the least—and it's continued through this year. Now that we're half-way through 2022, we want to give you a wrap of where the experts see the market going in the next half, and the trends Flotilla is seeing specifically in the OKC market.

What Is a "Healthy" Market?

A healthy, or "balanced" market, is measured by 5 to 7 months of home inventory—meaning if no more homes were listed, it would take 5 to 7 months to sell out of existing listings. For the past few years, inventory has consistently shown around 1 month of inventory. When inventory is below 5 months, we call this a "seller's market" due to the low supply advantaging sellers, and inflating home prices.

Home Prices will Continue to Appreciate (But More Slowly)

The analytics company, CoreLogic, shows that home prices rose by 15% last year. Taking the average prediction by major experts now places continued appreciation at 8.5% through 2022, with none predicting depreciation in prices. Deceleration, as opposed to depreciation, tells us that the market today isn't a bubble that will burst like it did in 2008.

Keeping Rising Interest Rates in Perspective

Interest rates have risen around 2% since the beginning of 2022, and it's predicted that the Fed might raise rates by as much as another .75% in the next few weeks.

While these are some extremely high hikes over a short period of time, they're rising from some of the lowest rates ever. The truth is, the extremely low mid-2% rates of the Covid pandemic were a temporary blessing…but not a norm. The increases we’re seeing should be seen as a return to normal (and still low rates), not cause for panic.

Increasing Inventory

In some good news, Realtor.com revised their home inventory predictions upward. At the beginning of 2022, they predicted only a 0.3% increase in inventory, but have since revised that to 15%! Great news for buyers who've been facing a glut of choices for the past few years.

Price Reductions

In Oklahoma City, we've noticed an increase in the number of price reductions within the first 30 days of listing a home—sometimes multiple reductions. You can find upwards of 800 price reduction results when searching your Flotilla partner's website! Agents and sellers may still be under the assumption that they can price homes much higher than normal. It takes an experienced agent to price your home correctly so it doesn't sit on the market too long—causing potential buyers to assume there's something wrong with your home since it's not selling quickly in this hot market.

Work with Agents Backed by Experience

For agents who persevered through the 2008 housing bust, they now have at least 14 years of real estate experience since then. The average experience of Flotilla’s Core Partners is 16.5 years —with our most experienced agents going on 29 years in the business! When choosing to list your home in this market, make sure to choose an agent with experience or one who is partnered with a brokerage based on support & cooperation from an experienced broker, fellow agents, and support staff.

© 2022 Flotilla Holdings, Inc.

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Jennifer Arsenault

Jennifer Arsenault is the Founder and Managing Broker of Flotilla, and has been in the Oklahoma City real estate industry since 1998. In January 2015, after eight years as a sales associate with Kelle....

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