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It's a great day at Jose Perez and Associates, my name is Jose Perez. I'm here to give you an update for the month of December. Guys, 2021 is over and I wanted to give you guys a few updates. Number one, why is winter the new spring and summer? Stay tuned for more information on that. Number two, when is the best time to buy? Number three, we're gonna get a little crystal ball and share with you guys what we see coming for 2022. Stay tuned for more.

Why Is Winter The New Spring?

Welcome back. Why is winter the new spring and summer? I'll share with you guys why. The pandemic has really completely changed all the algorithms, if you'd like to call it at that, of home selling. You see most of the time we get really busy in the spring and the summer. That's just simply not the case anymore. Take a look at this. "Home sellers have historically moved when something in their life's changed- a new baby, a marriage, a divorce, or a new job, the pandemic has impacted everyone and for many, this became an impetus to sell and make a housing trade." Jessica Lautz said that and she's a VP of Demographics and Behavioral Insights at National Association of Realtors. In addition to that, "the pandemic likely spurred occupants to shorten their homestay, as tenure in the home decreased to eight years from 10 years, according to the report. This is the largest single-year change in home tenure since NAR began collecting such data." What that means is the following, most people used to on average, stay in their home for like 10 years. That went down to eight years. That's the biggest change since NAR started keeping a record of it. So as you can tell, the pandemic has really made a difference for people. Some people are moving right now because they need that extra bedroom to work out of their home. Some people are moving because they need rooms for the kids. I mean, there's a lot of things going on that are causing people to move in eight years instead of 10 years. So if that's you make sure to reach out.

When Is The Best Time To Move?

In addition, guys, people are asking us, "Hey, when is the best time to move?" Do you guys want to know when the best time to move? It's this year. Do you know, what's second-best? Right now! So if you guys are thinking about making a move, make sure to reach out and find out what programs you qualify for and how the new loan limits impact you specifically.

Predictions for 2022

Third guys, I want to share with you our crystal ball for what is happening today, what is happening with property values, with interest rates, and with the number of sales. We'll start with sales. There were 6.5 million sales. Now we haven't quite finished the year 2021, but we know it's going to be higher. In 2022, we're anticipating it to be 3% higher than 2021. There's going to be tons of sales and it's going to be a great market for a lot of people specifically for the sellers. In addition to that, look at interest rates. Rates right now are on the rise. We know that the reason they are on the rise is because of the feds. The way that they control interest rates or control our economy, as they control how much money they're going to put into mortgage-backed security bonds, and they were putting about 50 billion into it. Now they said they're going to taper back. In layman's terms, let me explain it to you this way, the more money is in a bucket, the lower the interest rates are. The less money is in the bucket, the higher the interest rates are. While the feds are not putting money in the bucket anymore, they're going to start tapering back but we don't know exactly how fast that rate is going to go up. At the end of the day, here's a little look or glimpse at what we think interest rates are going to be, I think it's going to get closer to 4% by the end of the fourth quarter. In addition to that, property values. We've had double-digit appreciation over the last couple of years. That's huge. People ask me all the time, "are property value's going to go down?" Well, the short answer is no. However, the trajectory is not going be go up 10%. They're probably going to be going up about 4% to 5%, which is more of a normal market.

 

If this is a type of information that you want to be privy to make sure to reach out to us. We're sharing this on our social media channels and everywhere else. But if this is the type of information you want in order to make an educated decision, reach out to us at (562) 646-6321.