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Buying a Luxury Home in the Southeast in 2022

Buying and selling trends

Whether you want to sell or buy a house, you should be aware of how much inventory is for sale. Your real estate agent can find out the statistics for your area. Looking at Atlanta again gives you an idea of the overall trend. In the luxury market (4+ bedroom detached homes with a sales price of $600,000+ and more 2,500 square feet), there were 2,718 homes for sale in January 2020, 1,554 in January 2021 and 1,261 in January 2022.6

In the downsize category (sales price of $350,000 to $599,000, detached homes of 2,001 to 2,500 square feet with three bedrooms), there were 292 homes for sale in January 2020, 167 in January 2021, and 232 in January 2022.6

If you keep the smaller size but go up in price to the luxury category of a sales price of $600,000 or more, there were 79 homes for sale in January 2020, 50 in January 2021, and 53 in January 2022.6

Given the limited inventory at certain price points and house sizes, you might need to be flexible and expand your buying wish list if inventory is low in your area. The trend points to people selling their large homes and downsizing, so if that is also your intent, you'll need to be prepared for competition on both the selling and buying sides.

 

Interest rates

If you intend to buy a more expensive home than the one you currently have, you might be looking at taking out a mortgage. The good news is that mortgage rates are currently at historic lows. The Federal Reserve voted on March 16 to raise interest rates in 2022, and penciled in the possibility of six more increases.8,9 This marks the first rate increase since 2018, and is being done in an effort to combat the high inflation America is currently facing. But even after rate increases this year, mortgage interest rates will remain low.

 

Hottest real estate markets for 2022

Before you put your home on the market—and decide where to search for you new one—it's helpful to understand current geographic trends in the housing market. One trend is clear: The hottest and most desirable markets to buy a home in the U.S. in 2022 are mostly located here in the Southeast.

Tampa, FL, is expected to be the No. 1 real estate market in the country for home buyers from a combination of forecasted home value growth, how quickly homes are selling, the demand for homes, and a strong job market.10 Here are the top 10 markets, with most of them in the Southeast:

 

  1. Tampa, FL
  2. Jacksonville,FL
  3. Raleigh, NC
  4. San Antonio, TX
  5. Charlotte, NC
  6. Nashville,TN
  7. Atlanta, GA
  8. Phoenix, AZ
  9. Orlando, FL
  10. Austin,TX