Wondering what the future will look like for the Ocala, Florida real estate market?
The last two years have been an interesting time to be in the real estate profession. Buyers, sellers, and real estate professionals have had to adapt and change their strategies in reaction to new economic stresses. We’ve seen record low inventory and record high prices. There’s been a substantial supply and demand imbalance. But we’ve made it through some tumultuous times and we can’t wait to see what will happen in the future!
Based on the end-of-year data for 2021, we can get an idea of how things might shape up over the next several months. Without further ado, here are our predictions for the Ocala real estate market in 2022!
Rentals Are In Demand
The rental property market forecast for 2022 is largely positive. Strong employment growth and rental demand remain in Ocala. Rental prices jumped more than 10% last year—and they’re poised to go even higher in 2022. Landlords are unlikely to have many rental vacancies due to the strong demand.
We may see an increase in demand for roomier rentals that have enough space for a home office and outdoor space. With the competition of the housing market, people may also be looking for family-friendly rentals.
Inventory Will Rebuild
Out of all the ups and downs in the last two years, one of the biggest challenges has been the incredibly low housing inventory. This hasn’t just been a problem in Ocala – it’s been a nationwide shortage. Real estate agents have been struggling to find homes for their buyers due to a decline in new construction and fewer people selling their homes.
That being said, inventory is predicted to rebuild in 2022. The increased supply will be generated, in part, from new housing construction as well as from the end of forbearance for struggling mortgage payers, a situation that will cause some homeowners to sell. This is good news for buyers who are trying to stay ahead of rising interest rates. With luck, we’ll see more sales activity this year!
Competition Will Be Less Intense
Buying real estate has been anything but simple lately. Thanks to low inventory and low mortgage rates, many homebuyers are facing intensely competitive battles when it comes to purchasing a house. Sellers have been fielding multiple offers, often getting far more than the list price for their homes.
Although 2022 will still face a competitive seller’s market, with more inventory, the intense multiple offers will start to cease. Sellers will still be in a good position, but buyers will have a better chance at landing the home of their dreams without the stress of multiple rejected offers.
Assets Are Increasing in Value
While some property owners remain concerned that we are in a bubble that could pop at any time, the data doesn’t seem to point toward that conclusion. Rather, it looks like real estate assets will continue to increase in value. Even if home price growth slows from its current pace (and it is likely to do so by the end of the year), investors will still see their assets going up in value at a sustainable pace.
The median sale price of an Ocala home in the 2021 4th quarter measured at $250,000 which is up 28%. What we are seeing with our current investor clients is that their asset(s) have substantially increased in value. Historically, real estate prices will keep going up over time. While the residential real estate market may be uncertain, it’s a great time for single and multi-family investors.
In Conclusion…
Here’s a brief recap: Rentals will remain in high demand in Ocala. This is good news for real estate investors. Throughout 2022, the record-low housing inventory is likely to increase due to new construction and more houses hitting the market. This, in turn, will make it somewhat easier for buyers to secure the home they’re looking for. Investors and property owners are in a great position right now as home prices are appreciating in value. Overall, 2022 looks like a good year to be in real estate!
