Real Estate Trends to Watch Out for in 2022
When the pandemic disrupted many of the world’s regular operations, the real estate market was not exempt from its effects. The year 2020 saw a boom in sales near the end of the year, but consequentially brought about a nearly 30% decrease in inventory.
2021’s real estate market had its ups and downs. Although there was a decrease in inventory after 2020’s sales boom, the year saw low mortgage interest rates, which helped add affordability to some properties. The popularity of online Real Estate Services also saw a rise. Aside from its convenience, online Real Estate shopping also afforded safety for both buyers and sellers of property. Shopping for real estate at home made it easy to stay safe during the COVID-19 pandemic.
Whether you’re looking to buy or sell a home, it’s important to be on the lookout for the next real estate trends.
What are Real Estate Trends?
Real estate market trends refer to current events in the industry. Buyers, sellers, and real estate companies alike are often on the lookout for these trends. Studying these patterns can help those looking into real estate understand the current market.
Trends can also indicate details in several factors, which include:
- Real estate prices
- Interest Rates
- Property Inventory
Buying and Selling Property in 2022
Buying and selling your home is a process that can be difficult without the help of professionals. In an ever-shifting market, it’s important to read up, research, and talk to real estate agents before making a move on buying or selling property.
For buyers, inflation is something to look out for in 2022. With low inventory and fierce competition, buying a home is something that requires careful planning and consideration. These factors shouldn’t intimidate you from going into the market: after a consultation with your real estate agent, you can get started on a plan to buy your next property.
Sellers, on the other hand, are advised to take advantage of this market in 2022. The lack of properties for sale in 2021 left a considerable gap and saw good returns for sellers who put their property on the market. If you’re thinking about selling your property this 2022, it’s best to talk to your real estate agent before making a move. Some properties may not have good returns. According to the Federal Housing Finance Agency, property prices have been jumping between rising and falling, although some sources predict a pricing boom. Whatever direction prices will go, your real estate agent will be able to clarify these trends for you.
Whether you need to buy or sell property, it’s a good idea to keep in touch with your agent and watch the market before making a move.
As previously mentioned, 2021 saw a decrease in listings. At one point, inventory hit a low with only a small amount of properties for sale in the United States. Late August to September 2021 brought about a 5-6 month pileup of properties for sale. This indicates an increase in inventory, which should steadily grow as 2022 goes on.
Some sources have predicted a surge in foreclosure properties. This should also help stabilize the property inventory for 2022.
Mortgages and Auctions
As opposed to the lowering of mortgage rates in 2021, the year 2022 may see a significant rise in mortgage rates. Higher mortgages may affect buyers’ ability to get housing loans. This spike indicates a struggle for first-time buyers and sellers, which could negatively impact the housing demand.
For first-time buyers, it’s recommended that you process your mortgage approval. With the limited home supply of 2022, a pre-approved buyer might be able to take the property you’re looking at before you can.
Be sure to consult your real estate agent for help and information on mortgaging and buying property.
Due to limited inventory, property auctions may increase. Buyers may want to consider looking into online auctions: it’s a cheaper, safer option for bidding for properties, especially during the pandemic.
Why Monitor Trends?
For buyers, sellers, and real estate agencies alike, monitoring the year’s trends can give valuable insights into several factors. Consulting with real estate agents may help you understand a few aspects of the market, but it’s always a good idea to do your research before buying or selling a property. Reading up on the current trends of the real estate market can help you make informed decisions.
Aside from being able to predict the rising and falling of property prices, trends can also help provide other information. This can include housing supplies, alternative options, interest rates, and other factors.
As you study the real estate market trends, it becomes easier to navigate the buying and selling of property. Informed decisions can help you avoid scams or ludicrous pricing.
Whatever you need, LUXE Forbes Global Properties is your best real estate companion. We offer a variety of services that ensure your needs are met. Whatever type of listing you’re looking for, LUXE Global guarantees you’ll find your perfect match.
Contact us now to begin your real estate journey! Our brokers will guide you through the entire process.