4 House-Flipping Predictions for 2022
After an incredible run on home values in 2021, real estate investors are looking ahead to 2022 to see where the real estate market could be headed. Given that fix-and-flippers, in particular, rely on accurate predictions of future value, knowing where things could be going is a key facet of their business. While no one has a crystal ball, some indicators and data can be used to help us formulate predictions. Consider these four predictions for house flipping in 2022.
Big players, including publicly traded companies like Zillow (NASDAQ: Z)(NASDAQ: ZG), have said that they expect increases in home values to cool a bit in 2022. The company's August 2021 to August 2022 forecast, released last month, predicts home prices will grow at a mere 11.7% instead of 19.9% as in the prior 12-months.
The company has doubled down on the theory of slowing real estate values by pulling out of its iBuying business, which was essentially a tech-driven fix-and-flip model. Zillow said that its purchase costs exceed potential sale prices even after repairs and renovations are made to add value.
Source Fool.com