“There is a quote that hangs on my wall that reads, ‘Life is not a journey to the grave with the intention of arriving safely in a pretty and well-preserved body, but rather to skin in
2021 END Review in Real Estate.
Dated: January 13 2022
“There is a quote that hangs on my wall that reads, ‘Life is not a journey to the grave with the intention of arriving safely in a pretty and well-preserved body, but rather to skin in broadside, thoroughly used up, and totally worn out loudly proclaiming, wow, what a ride.’ Let’s apply that quote to 2021 real estate.
“The journey began with a fast ascent up an ever-increasing mountain. We left 2020 at what felt like a solid 10,000 feet in elevation only to find we were on the side of Mount Everest with 19,000 feet left to go. Already out of breath from two straight years of hiking and camping, the real estate industry was already winded, to say the least. But 2021 was going to push the industry to all new highs, and lows. It just depended on if you were a buyer or a seller.
“We got to the end of December and realized we had pushed the prices of real estate up 18.6% from one year earlier. All year was a decline in listing inventory and a vertical arrow of price increases. We got to see iBuyers buying up homes for rentals blowing owner occupants out of the market. The industry saw the goliath Zillow have to take a knee on its ibuyer program and admit defeat and that their own valuation algorithms did not work. We witnessed hedge funds buying up complete neighborhoods, sub-divisions, and residential homes nationwide. The FED printed more money this year than at any other time in history. The year ended with record inflation, first time unemployment claims rocketing up as 4.5 million Americans left workforce all the while employers are trying to hire 10 million.
“If I were a drinking man, I would be typing this with a stiff drink in front of me and a cigarette in my mouth. Imagine the 1950’s TV shows, where I have a trash bin full of writings that did not pan out, a cocktail on my desk, my hat on crooked and a burned-out cigarette in the ashtray. This is how the real estate industry feels as a whole. We need a serious detox.
“I don’t have a crystal ball in front of me, but the future may not be as bright this year. The U.S. has stacked up record debt. The middle class is getting clobbered. And the FED has painted itself into a corner and not admitted it. Raise interest rates, crash the economy – leave them where they are, super inflation becomes a very real issue. All of this affects real estate,” said Colorado Springs-area REALTOR® Patrick Muldoon.
I have many interests and hobbies to supplement my busy career in real estate. Although I enjoy my work I also enjoy finding free time to enjoy the most important things in life. This includes being w....