Home prices will increase 11% in 2022, Zillow projects

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FORECASTERS PREDICT THERE WILL BE MORE THAN 6.3 MILLION EXISTING HOME SALES IN THE NEW YEAR.

WHAT ARE YOUR THOUGHTS ON THIS PREDICTION SHOULD PEOPLE BE TAKING THIS AT FACE VALUE? >>

WE DO THINK THAT prices ARE GOING TO GO UP IN 2022 MY BELIEF IS THAT IT WILL BE IN THE 70% RANGE INCONSISTENCE WITH WHAT FANNIE MAE HAS BEEN SAYING. >> WHAT ARE SOME FACTORS THAT CAN PLAY INTO HIGHER HOME prices NEXT YEAR? >> SURE.

IT IS REALLY TWO THINGS. PEOPLE BEING ABLE TO WORK FROM ANYWHERE AND THEN MORE IMPORTANTLY WHERE YOU ARE REALLY SEEING HISTORIC SHORTAGE IN CONSTRUCTION LABOR AND SUPPLY CHAIN DISRUPTIONS LEADING TO INCREASED prices. >> WE HAVE BEEN SEEING THAT ALL PANDEMIC LONG THERE CERTAIN AREAS IN THE U.S.

THAT ARE EXPECTED TO BE MORE IN DEMAND THAN OTHERS? >> YES. THE ONE THAT WE SAW LAST YEAR AND THIS YEAR WAS PEOPLE ARE NOT RESTRICTED TO WHERE THEY NEED TO WORK OUT FROM SO, YOU’RE REALLY LOOKING AT THE SUN BELT WHICH WILL SEE INCREASES.

>> YOU THINK THOSE FOLKS WHO MOVED TO GO WORK TEMPORARILY, YOU THINK THEY MAY PERMANENTLY MOVE TO WARM RESPONSE? >>

I MEAN, THAT IS ONE OF THE KEY THINGS THAT WE HAVE SEEN THAT HAS CHANGED FUNDAMENTALLY, EARLIER YOU BOUGHT A HOME IS A LONG-TERM ASSET.

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NOW, I THINK THAT PEOPLE BUY HOMES AS A SHORT-TERM COMMODITY. IT MEANS THAT PEOPLE ARE MOVING INTO HOMES FOR 6 TO 9 MONTHS AT A TIME AND THEN USE IT AS AN INVESTMENT PRODUCT AND BUY ANOTHER HOME IN THE MARKET AND THAT ESPECIALLY HOLDS TRUE FOR MILLENNIAL’S.

>> HOW HEALTH HAS THE PANDEMIC OVERALL SHIFTED HOMEBUYERS HABITS? WHAT IS BEEN THE IMPACT ON SELLERS? >> THE BIGGEST SHIFT WE HAVE SEEN IN TERMS OF HOME BUYING HAS BEEN THE END BUYER USES THE HOME AS A SECOND TRANSACTION VERSE AS OPPOSED TO THE PRIMARY RESIDENCE.

WHAT THAT MEANS IS TO GET ESPECIALLY THE MILLENNIAL’S, THEY WANT TO BUY HOMES IN CHEAPER LOCATIONS TO BEGIN WITH AND STAND THERE MAYBE FOR A FEW MONTHS AND THEN RENT THEM OUT OR VIEW THEM AS AN INVESTMENT PRODUCT.

WHAT THAT MEANS AGAIN IS HOME PURCHASES ARE NOT EMOTIONAL PRODUCT ANYMORE. PEOPLE ARE BUYING HOMES PURELY FOR FINANCIAL GAIN AT THIS POINT. >> I HAVE DEFINITELY SEEN THAT WITH MY FELLOW MILLENNIAL’S. HOW LONG DO YOU THINK BEFORE THE HOUSING MARKET COOLS A BIT AND prices DECLINE?

>> THE WANTING TO KEEP AN EYE OUT ON HIS KNEE INFLATION BECAUSE AS INFLATION CONTINUES GROWING, THE FIFTH WILL BE FORCED TO INCREASE INTEREST RATES AND AS INTEREST RATES GO UP, MORTGAGE RATES GO UP AND I THINK THAT WILL HAVE TO AN EFFECT ON THE HOME PRICE MARKET.

WE ANTICIPATE THAT TO BE .

Read More: Zillow Bet BIG and LOST and Now YOU’LL Pay

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