If you’re looking for a housing forecast for 2022, you’ll be glad to know that the market remains bright for real estate sellers. It will continue to experience low mortgage rates and an inventory shortage, leading to homes being purchased just hours after they are listed.
As 2021 has drawn to a close, here are the things that you need to know about the housing market this year so you can plan ahead.
Rising Prices Won’t Stop Soon
2021 has been a year for real estate sellers as prices increased consistently, and 2022 will see this trend keep its momentum. Many experts predict that while home values will not decrease, this year will see an increase at a less crazy rate compared to 2021.
This sustained housing price appreciation is a result of rising interest rates and low mortgage rates, and a shortage of supply coupled with an improving economy and most homebuyers possessing enough disposable income.
Housing Demand Will Remain Strong Amid Low Inventory
While it is true that homes for sale were already in short supply even before the pandemic, the current situation has been aggravated due to supply chain issues and labor shortages. Housing construction, therefore, will still experience a shortage in inventory despite a consistent uptick in demand.
This strong demand for homes is a consequence of the emergence of millennial buyers that are looking to buy their first homes this year.
Both of these factors will result in faster turnaround times for your real estate as people compete to find homes this coming year.
Work-From-Home Setups Will Impact Homebuyer Preference
Families and workers are now putting priority into finding a new home in suburban areas instead of in the heart of the city since there is no longer pressure to report into offices every day. These work-from-home possibilities are also what fueled suburban homes to increase in value and demand.
Suburban homes, after all, provide a larger living space compared to urban apartments in downtown areas.
Therefore, remote work will become a key factor in the moving decisions of most homebuyers in 2022 as they fully receive guidance into adapting the work-from-home setup from their companies.
Online Home Buying Is Rising in Trend
Due to pandemic fears and restrictions, families and other homebuyers are now opting to use digital means to shop for homes since 2021, and this will likely continue in the 2022 market landscape.
You may have already seen the rise of online real estate websites, brokerages, and property portfolios. You may even have one yourself.
This presents a challenge for home sellers such as yourself since you will be looking for ways to increase your home’s curb appeal through a buyer’s phone or computer and even facilitate a safe and comfortable buying process for them.
With the momentum of rising prices, shortages in inventory, and the rise of a digital means to shop for properties online, the 2022 market for real estate is shaping up to be a year of opportunity for home sellers.
While these predictions are not absolute, all the trends are pointing towards a competitive but highly rewarding real estate market this year.