Christopher de Diego is one of my favorite entrepreneurs. He’s one of the most renowned investors in residential real estate and a huge inspiration to investors around the US.
I wanted to help out my readers interested in residential real estate, so I asked Christopher if he’d be willing to share some tips and talk about some trends he expects to pop up in 2022. Thankfully, he agreed, and now I can share these trends with you! So without any further ado, let’s see what Christopher de Diego had to say.
Christopher de Diego and most other experts agree that we should expect higher mortgage interest rates. Christopher expects the rates to rise up to about 4.5%, but he could see them getting a little higher.
No matter what, there’s not a lot of hope that they will drop below 4%, so you shouldn’t plan for such a thing as a real estate investor.
Rising Housing Prices
Beyond just the mortgage interest rates, Christopher de Diego also expects to see housing prices rise in general. For the last couple of years, this has been the trend, and there’s nothing to suggest it will stop.
This varies, but one of the biggest, most obvious reasons is COVID-19. A large portion of people believe we are in a housing bubble, but experts like Christopher de Diego disagree with them completely.
Growth will be Slow
As we said, Christopher de Diego does not believe that we are in a housing bubble. He believes that there is still room to grow but that the growth will not be as exponential as we’ve seen in the past.
COVID-19 restrictions have been slowly relaxed, and this trend will likely continue, meaning more people will be able to get back to work and get their jobs back. This could mean that the housing market is actually in for another boom once this happens.
Cautions are necessary in order to avoid committing mistakes as a new residential real estate investor.
Rising interest rates and rising prices have put a lot of people off when it comes to real estate investing, especially in residential real estate. Christopher de Diego does not believe that there is anything to worry about.
Less competition means you can enter the market for a better price and that there will be fewer people trying to undercut you when it’s time to sell. As I said, many people believe that there is still room to grow in the short term, let alone the long term. So less competition means now is an excellent opportunity to get into the game.
Digital Real Estate
Christopher de Diego is a huge fan of NFT technology and believes we will see it utilized in the real estate business one day. However, we’re not talking about NFTs now; we’re talking about online real estate transactions, which are already occurring.
Services like Zillow have been experiencing insane growth lately, and Christopher expects this growth to continue through 2022 and beyond as the world becomes more digital and younger generations enter the real estate game.