The real estate market is constantly changing, and it can be tough to keep up with the latest trends. That’s why we’ve put together a list of the real estate market trends that are expected to dominate in 2022. Whether you’re a real estate agent or someone interested in buying or selling a home, this information will be helpful! Keep reading for more real estate trends in 2022.
It’s no secret that the real estate market has been booming in recent years. Prices have been rising, and homes are selling faster than ever before. However, top real estate agents believe this trend will start slowing down in 2022. They predict that prices will level off, and the market will become more stable. This is good news for buyers who have been struggling to afford a home. It’s also good news for sellers thinking about selling their homes soon.
As we move into the new year, a few real estate trends are worth paying attention to these trends. Here are the real estate trends for 2022:
-Affordable houses are still needed
Before the pandemic, house rents outperformed home purchases by a significant margin in 59 percent of US housing markets. Residential real estate prices aren’t helping, as they continue to eat into wage increases in 80% of markets. The demand for rental accommodation was projected to be fueled by rising home prices.
However, many people consider purchasing a property when low mortgage rates become available due to the pandemic. However, as prices rise, previously owned homes remain the most popular option on the market. According to the National Association of Realtors, 87 percent of house purchasers prefer previously owned properties. Better overall value (33 percent) and better price are the main arguments for 31 percent.
-The rise of the suburban home
One real estate market trend we’re seeing is the rise of suburban homes. More people are moving out of the city and into the suburbs in search of more space, peace, and quiet. If you’re considering moving to the suburbs, now is the time to start looking for your perfect home.
-The popularity of vacation rental properties
Another real estate market trend we’re seeing is the popularity of vacation rental properties. More people are searching for vacation homes they can rent when not using them. If you have a vacation home you’re considering renting, now is the time to start advertising it.
-Artificial Intelligence in the real estate market
Artificial intelligence (AI) and machine learning (ML) will continue to permeate mobile and desktop technologies in the future, assisting CRMs and aggregation search engines in evaluating properties, forecasting commissions for imminent closings, and recognizing trends.
Consider autonomous vehicles, which currently use image recognition to recognize nearby vehicles and translate those photos into helpful information. Image recognition in real estate will allow brokers to swiftly discover and narrow down searches for those unique, subjective aspects that aren’t always represented in listing material, such as desired layouts, floor and wall finishes, view type, landscape, and room conditions.
-Declines in the Rental Property Market
The rental market for both residential and commercial properties in big cities was on the decline in 2020, partly due to a transfer of people from cities to suburbs.
Demand for rental houses will continue to shrink in major cities as those who can afford it attempt to buy a home, while those who can’t find other ways to save money or fall behind on their rent hunt for other options.
Last year, the number of young professionals who gave up their residences and returned to live with their parents increased.
-The growth of the real estate investment market
Another real estate market trend that we’re seeing is the real estate investment market growth. More and more people are investing in real estate to make money. If you’re thinking about investing in real estate, now is the time to start researching the best investment opportunities.
-The increase in homebuyer interest rates
One trend that we’re seeing is the increase in homebuyer interest rates. Interest rates on mortgages are rising, so now is the time to lock in a low rate if you’re considering buying a home.
-The expansion of the real estate market to include more rural areas
Another real estate market trend is expanding the real estate market to include more rural areas. More and more people are moving to rural areas in search of more space and a slower pace of life. If you’re considering moving to a rural area, now is the time to start looking for your perfect home.
-Single-house families
may create shortage
Buyer demand for single-family homes is increasing as people migrate from cities to the suburbs.
Realtors say home sales will grow another 10% in 2021, bringing them to their highest level since 2006.
Property shortages and increased housing costs have benefited management and construction firms.
According to Redfin’s chief economist, single-family home searches were at their highest level in 2020.
The inventory of single-family homes is at its lowest level in nearly 40 years.
-Rents are rising
If pandemic-related home sales were the focus of real estate news in 2020, the focus in 2021 would be on how the sales market drove an increase in rent costs.
The national median rent has climbed by 16.4 percent since January 2021, which is particularly noteworthy given that rent growth from January to September in the pre-pandemic years of 2017-2019 averaged just 3.4 percent.
While rents stayed relatively unchanged in 2020, rising housing prices, investor interest, and a growing build-to-rent sector drove up prices in 2021.
Top real estate agents are already keeping an eye on these trends and are ready to help their clients make the best decisions for their real estate needs in 2022. If you’re considering buying or selling a home in the new year, contact top real estate agents in your area to get started.
If you’re a real estate agent, stay up-to-date on real estate trends 2022. This will help you better serve your clients and give them the information they need to make informed decisions. 2022 is shaping to be an exciting year in the real estate market, so don’t miss out on all the action