The 2022 Housing Market Just Got Even Wilder

We all knew the 2022 housing market would be a wild one. Interest rates were poised to rise, demand was staying strong, and inventory hit decade-long lows at the end of 2021. What we didn’t know was how fast (and hot) the winter market would pick up once interest rate hikes began to set in. Now, real estate investors are stuck scratching their heads, wondering whether or not to hoard cash for a foreseeable correction or buy any deal they can get their hands on.

Before you tell your agent to write up fifty all-cash offers for that two-hundred square foot downtown shack, double-check your goals and investing plans—you may be getting ahead of yourself. Our delicatessen and data-loving host, Dave Meyer, is back to drop his five-point thesis on how investors can win in this hot housing market.

Dave doubles down on the fact that real estate investors need to stay vigilant and keep their offer-making-trigger-finger ready to fire when the right deal comes up. But, this should all be done while keeping the cash-flow and appreciation fundamentals in mind, so you can build wealth while others are scrambling to buy anything and everything on the market.

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Check out Last Week’s Episode on Waiting for a Housing Market Crash:
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Check Out The BiggerPockets Bonus Video on Investing FOMO:
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Freddie Mac’s YoY Mortgage Rate Graphs:
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How Do Interest Rates Really Affect Your Investments?
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Housing Market Affordability Has Crossed a Concerning Line:
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Housing Markets Where Demand Meets Supply:
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Connect with Dave on BiggerPockets:
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0:00 The 2022 Housing Market
2:20 1. Rising Interest Rates
4:49 Mortgage Affordability
5:53 Increasing Demand
6:37 2. Record-Low Housing Inventory
7:49 Rising Rent Prices
10:00 Dave's 5-Part Housing Market Thesis

[RealJoshBinder]

Video starts at 2:25

TLDR: Rising interest rates and declining affordability put downward pressure on the housing market while low inventory and high demand put upward pressure on the housing market

Great video 💯

[BlackOpal_Rising]

Just trying to get a first home with a VA or FHA loan is near impossible. While I work in the home remodeling business for a contractor, as I tour these investor homes looking for a move in ready house to buy and live in, I am appalled at the lack of quality and terrible craftsmanship when asking for far more than a home is worth. I forsee a lot of cash investors having to humble themselves and take lower profits so that regular people can actually buy again. And/Or I hope that people start taking more pride in the work that is done on these homes instead of just sticking lipstick on a pig. When I do start investing and flipping myself, I will pride myself on handing over homes that will last. Quality and Ethics over profit.

[thomaseuziere]

Data Deli and Biggernews episodes are some of my favorite content from BP in the past several years.

Also, one vote for Henry Washington to be the next co host of BP podcast please!

[johnq]

I guess living with your parents or having multiple roommates is going to be the new norm. If you can't afford a 1 bedroom apartment on a single income, that shows there's a serious problem in the economy.

[Liz]

We bought our townhouse 5 years ago at $30k over asking, we are currently selling our house now and had 4 offers with over asking. We are priced out of this market and moving to the neighboring state. Which seems to be rocketing in price as well.

[sergiolauramaldonado]

Great concise information! Thank you!!

[marianfreshour]

Are you still living out the country and investing in CO? Thanks for the information. It is always of value. Thx

[gunplaytv]

Is it worth locking in a rate _now_ at say, 3.8?

[chriswebb]

There is a third variable in affordability - income and incomes are rising which is why demand has not softened. Great video.

[realestateDoc]

Can you please clarify what you mean by equity values may go down but home prices may go up. Is that contradictory, maybe I’m misunderstanding your statements.?

[diegolara]

I am so happy we were able to get into a home in Sept when interest rate was still under 3 percent. The house prices have risen 30 k since we purchased our home. This is a new build so I am able to see what the current prices are.

[peetecarrillo]

Mortgage rates are almost up a whole percent since the beginning of the year. I sell real estate in Palmdale, CA and I haven’t see any softening in prices. Inventory continues to decline and prices are firm due to multiple offers being received on nearly every home.

[arttaggerr]

Bullhead City, AZ.-Laughlin, NV. is still a reasonable area to buy. Great Springtime’s.

[sadams]

100% agree with Dave's thesis! Fantastic show!

[NGreene]

Are these only on video format? Anything Audio only with some of these BP videos? Data Deli has a playlist of videos on here, anyone know if it’s video only? (I am not talking about the BP podcasts, just these specific informative videos).

[nicktiniakos]

I am obsessed with your videos. Really enjoy your data and content

[esalinardi]

Very clear, thorough explanation… and easy to understand and apply. Thank You!

[GC]

In your estimation, would investing in a solid rental property in a not so volatile market, e.g. midwest US or south US be a prudent choice for someone averse to risk taking you

[steveelling]

Dave has converted to emphasizing cash flow! It's a miracle.

[lizaell]

I am looking to invest in a 4 -8 apartment unit. Here in south florida the market has always been crazy but, like you said there are deals out there. Can you give me any advice?