Last Updated on September 29, 2022
Allen Tate President & CEO Pat Riley talks about market challenges and cycles
The more things change, the more they remain the same.
In 2021, the residential real estate market has continued to see challenges – new construction shortages and supply chain issues, unprecedented appreciation, high buyer demand, and historic low inventory and interest rates.
“We have been navigating so many uncharted waters this year,” said Allen Tate Companies President and CEO Pat Riley in the November edition of Carolinas Market Update. “But despite these challenges, some things are certain.”
“The real estate market has always ebbed and flowed. It’s a cycle. We have experienced a sellers’ market for the past 18 months, but at some point, the market will shift back to a more balanced market or even favor buyers,” Riley said.
Interest rates will begin to rise in 2022, he added, and while we will still see appreciation, it will be 8 to 9 percent, vs. 13 percent in 2021.
Non-traditional real estate models – like E-buyers, investment buyers and Wall Street buyers – will continue to present alternatives to traditional real estate models. And while they might be an option for some sellers, they demand the careful scrutiny of a real estate expert, Riley said.
Also, there is no such thing as a “no closing costs” mortgage. Riley recommends a Second Look – a no-obligation second opinion by Allen Tate Mortgage, to make sure buyers are receiving the best total financing package.
“Whether you’re buying or selling, we’ll help you understand the market and be ready to guide you – no matter what changes the market brings. You always need a real estate coach for your most important financial decision,” Riley said.
Carolinas Market Update is targeted to consumers in the Charlotte, Triad, Research Triangle, High Country, Highlands/Cashiers and Upstate S.C. regions. It is produced every other month by the Allen Tate Companies and features information, statistics, trends, and predictions about the real estate market in North and South Carolina.