Market Forecast 2022

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Real Estate
 
2022 Economic Forecast
  • Georgia is currently at a 2.5% unemployment – Lowest in Nation
  • Nationally – The majority of recent new jobs being created are paying $30,000 per year or lower
  • Locally – Job growth/creation Forecast for Metro Atlanta is showing high wage job growth in 2022
  • Metro Atlanta has the highest amount of people with High Tech/High Income Visa’s – Metro Atlanta has the Highest percentage of high paying immigrant jobs in the entire U.S.
 
Inflation / Consumer Goods Price Increases
Current inflation factors include:
  • Higher wage demands due to worker shortage – businesses must raise prices to cover higher wages. 2022 forecast suggests more higher pay jobs will be created and filled, which in turn should help curb inflation towards the end of 2022.
  • Supply Chain was disrupted by government stimulus fund checks - spurred a massive increase in consumer spending all at one time; 20% off all US dollars in circulation were put into the economy in 2021– higher demand caused businesses to increase prices.  Supply chain issues should normalize towards the end of 2022.

2022 Housing Market Forecast
Atlanta Metro has the highest demand for housing in the Nation, highest number of buyers vs. the number of homes on the market. Atlanta Metro is in top three of areas with new households established from people moving from other States.
  • Housing sales in Georgia: 150,000 in 2020 vs 156,990 in 2021 (4.6% increase).
  • Home prices increased by 24.9% in 2021 vs 2020. The forecast for 2022 is a 5.4% increase over 2021. That would mean a 30% increase in the prices of homes in 2 years!
Mortgage Rate Forecast:
  • By the end of 2022 the estimate of rates with be at 3.4% level – mortgage companies will start raising rates now at a steady pace as not to cause “sticker shock” at the end of the year.  Rates can be as high as 4% by the end of 2023.
  • We should see the first round of rate increases start around March of 2022
Locally 26% of home sales in 2021 were purchased by investors. 4% of home sales were purchased by Institutional Investors (owning over 100 units). Numbers are similar to National trends 25% & 5%.