Real Estate Crash in 2022?

Are we heading for a real estate crash in 2022? Responses and comments I've received have many asking if home values have finally peaked and if home values will start to crash in 2022. Many people are fearful they will overpay, but I believe that 'fear' stands for 'False Evidence Appearing Real' and 90% of the things that we fear actually never happen. I like to look at the data and make an informed decision. So here's the data on this question.

Data shows we have an extreme supply imbalance, there is currently a 5.5 million home deficit and our supply has shrunk 75% in the last five years. Also, 40% of the U.S. dollars have been printed in the last two years. So there's a lot of cash in this market that's…

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Huntsville is the #1 City in the U.S.

BREAKING NEWS!  Huntsville has been ranked the #1 city in the entire U.S. to live in by U.S. News and World Report. Devin Booker, real estate editor of U.S. News and World Report, said the biggest priorities for consumers during the pandemic have been both housing affordability and quality of life. Huntsville has both with our median sales price 20% below the national average.

Huntsville has been ranked high on affordability, not only because of our affordable home prices. But also high paying jobs with Blue Origin, Mazda, Toyota, Facebook, the FBI, and now Space Command. Joining this long list of high paying engineering and tech jobs in Huntsville during the pandemic, the outdoor quality of life…

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Why Rents Are Rising

According to a recent article by Redfin, the average rent in the U.S. increased 14.1% year over year. Why are rents rising and when will these rents come back down?

1) We all know that we're experiencing the highest inflation rate we've seen in twenty years of 8.5%. This is a result of the Fed printing more and more dollars. In fact, 40% of the dollars in circulation have been printed in the last two years.

2) Demographics. Our nation is continuing to grow but our housing has not kept pace since the 2008 real estate crash.

3) Millennials and lack of buying opportunities for this generation. Many of them are at prime ages to settle down and purchase their first home. However, the challenge is that they're losing…

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The Future of Huntsville Home Prices

Huntsville, Alabama has been touted as one of the most affordable cities in the U.S. to live in with high average salaries and below average cost of living, including home prices below the national median. But will that continue? Yahoo! Finance recently did an article with predictions on when several major cities throughout the US will become too expensive.

Guess who made that list? You got it, our very own Rocket City. The article references a study done by Go Banking rates, which predicts Huntsville loses its label of affordability in 2030. In that year, it’s predicted that the average home value surpasses seven figures and comes in at nearly $1.2 million. That's an increase of nearly four times our…

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Could Floor Plans Become Illegal?

Could you get sued for creating a floor plan of your own home? Forbes magazine recently reported that the National Association of Realtors (NAR) is fighting a court ruling that states “homeowners that post floor plans of their own homes on websites could trigger a copyright lawsuit”. Seriously!? With all of the challenges we have currently with the undersupply of housing, the courts have decided to make creating a floor plan of your home a copyright infringement?

That just seems crazy since floor plans are critical pieces of information for both builders and sometimes property owners to sell their home. The appraisal process also uses floor plans to calculate square footage and determine value for the…

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Fixed Rate Mortgage &
How It Can Make You Rich

Homeowners have an average net worth that is 40x that of renters but the question is “Why?” Homeowners have an average net worth of over $250,000 versus only $6,300 for renters not because they’re better savers, it’s because of the fixed rate mortgage.

The fixed rate mortgage is the most powerful investment tool in the universe because it helps you build wealth in three ways:

1) You benefit from price appreciation that comes from inflation. Also, assuming you invest 20% down, 10% appreciation actually turns into a 50% gain in your money. 

2) You benefit from principal reduction, which is like a forced savings account for every mortgage payment that you make.

3) You benefit from tax…

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New Home Contracts Canceling

New construction contracts in Huntsville, Alabama are getting canceled by buyers so what does this mean for the Huntsville real estate market?


Due to rising interest rates, many buyers are getting priced out of their new home. The reason for this is the average mortgage for a $300,000 home, which is the average sales price right now in Huntsville, has increased from approximately $1,575 per month up to almost $2,000 per month. That's an increase of about $425 per month which equals over $5,000 per year.

Why did this happen? USA Today has recently reported that inflation hit 8.5% percent in March, that's the fastest pace in 20 years so the Fed had to act to slow down demand to ultimately start to cool down this…

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Inflation is Legalized Counterfeiting

According to a recent MarketWatch article, inflation hit 8.5% in March which is the highest amount in 40 years. This raises the question, “Is Inflation Legalized Counterfeiting?” Also, how do you survive and even thrive during a period of high inflation?

Inflation is Legalized Counterfeiting 

Inflation is legalized counterfeiting and it's bad for consumers. Inflation penalizes savers, with 8.5% inflation you lose $8,500 a year in spending power on $100,000 in savings. Inflation is also a hidden tax. When the government decides to spend more money, they found that the country would revolt if the government imposed a flat 8.5% tax on all savings.

However, they can get away with it by just printing…

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Bad News for Huntsville Renters

There's bad news out there for renters in Huntsville, Alabama with rents rising 17% nationally. Our local WAYY 31 reported average rent is up $283 a month to an average of $1,792. That's over $3,300 per year which is the difference between a staycation at the apartment pool and heading to the beach this summer.

The article also cites the chief economist at Realtor.com who said, “Rents will remain high and expect some cooling from the current pace.” I think that's a little optimistic because some cooling could also mean we rise 6%, 8%, or even 10%. So with that, I still think there's going to be a lot more room for these rates to rise. 

The reason for that is 40% of US dollars have been printed in the…

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Huntsville Interest Rates Are Rising

The Fed announced six interest rate hikes in 2022. The question is what will rate hikes mean to the Huntsville real estate market and are we going to see a real estate crash this year? Before we answer that, let’s recap on what created this historic sellers market with both record low inventory and record appreciation.

The Cause

#1 - Housing Deficit

We have a 5.5 million home deficit in this country that dates back to the 2008 housing crash. Builders slowed down the supply of new homes in this country but we continued to have family formations which created that 5.5 million home gap.

Due to this deficit, we now have record low supply of about 800,000 homes nationally. Normal supply is…

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