In this video, San Diego Realtor Clayton Connolly will take a look at the current state of the market and what to expect in 2022. We discuss everything from home prices to interest rates, so you can make informed decisions about your real estate investments.

Hello, this is Clayton Connolly, your real estate captain, speaking and I want to give a quick economic overview about what's happened in real estate and what's happening and what's going to happen. Now, am I an economist? No. Do I hang out with them? Yes. Do I listen to people whose sole job is to pay attention to what's happening economically?

Yes. I'd like to share that with you right now. Okay, here's the deal. COVID, we pumped money into the economy, they wanted to keep the economy rocking, so they lowered interest rates, which is what you do if you want to stimulate an economy. Because of all the money we had coming in, inflation gets higher. And inflation rose. In case you haven't noticed, everything is a bit more expensive or actually a lot more expensive. So inflation rises, and so what did they do? They continued to, in order to slow down inflation, they raised interest rates.

So interest rates experienced a hike of like unprecedented speed this year. So like in January, February, March, rates were at 3%. And now as I'm making this video in November, they've hit up into the, you know, mid sevens. They've taken a little bit of a decline, but basically, that's a huge spread in a six-month period of time. So, what's that done to the housing market? We went from this white hot housing market because interest rates were so low to now buyers have been freaking out and sitting on the fence because they can't afford what they used to be able to do because of rising interest rates.

What does that mean now? Well, when the last four months, the inflation rates have been much, much, much lower. So, we went from rising inflation to lowering inflation. So what does that mean for interest rates? Interest rates in 2023 will continue to steadily decline. What does that mean to the housing market? Rates will go down. Homes will become more affordable. More buyers will get off the fence, enter into the real estate market and purchase homes.

Here's why this is important. If you're considering making a move, now's the time to get your ducks in a row, to have your consultation, to put a plan together, while there's just less activity in the real estate market. Because the numbers show, interest rates will be going down with inflation. Inflation is about to go like this. Rates are going to follow. What does that mean? Well, we're probably going to be experiencing at some time in the near future an amazing competitive real estate market once again. There's a window of opportunity right now to be able to onboard before all the masses hop back on to purchase homes. So in summary, here's the deal.

Inflation went up, rates went up. As inflation goes down, rates are going to go back down. Hopefully that's enough to chew on. If you'd like to learn more and talk about that and how that affects you personally, please reach out. I'd love to be able to set up a free consultation and explain more and hear more about your goals.

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