This month we are talking about my Crystal Ball Predictions for 2022. Now do I have a crystal ball? No, certainly not but we do have a lot of research that helps us to understand and answer many of the questions that you do have.
And the first question that people are asking me, particularly buyers, is you know what's going on with prices, Michelle? Because if prices are going to go down, then I’m going to wait. Well, I'm here to tell you that prices are not going down and also what I hope will be comforting news to you which is that I do not think we are in a bubble.
If you look at the price trajectory, historically say over the last hundred years, real estate increases at a rate of three to five percent annually and if you remember in 2006, we had an all-time high. Prices did screen mop and it was a bubble and then we had a trajectory where prices fell until about 2014.
Now, if you look at the price curve from the 30s until now. What you'll notice is that the prices are going up now to bring us back to the original standard curve. So, for example prices took a spike in 2006, they took a terrible dip and now they're coming back to where they should have been if prices had simply risen at a three to five percent rate all the while.
Not only are prices going to continue to rise but we still have room in that trajectory for prices to go even higher and still not be in a bubble. The experts are saying that prices will continue to rise probably through 2005 and we are expecting interest rates to stay low but not for much longer they're saying that by the end of 2022, they're going to be over four percent.
So, if you're concerned about making a purchase, now would be the time to get in so that you can capture that two and seven, five, or three percent interest rate. I hope this information has been helpful. If you'd like to discuss it further, please reach out to me.