What will this year bring? Let’s explore the top market trends to be on the lookout for as we dive into the new year. The real estate market was fast and furious in 2021 and if you are wondering what this year will bring, we are here to shed some light.
There are so many predictions out there right now on what the market will look like throughout this year. Let’s take a deep dive into contributing market factors like key demographic changes, the pandemic, the economy, interest rates, as well as the housing inventory when looking at the country as a whole.
First, let’s take a look at demographic shifts. Demographic trends such as homeowners retiring and the percentage of homeowners who have vacation and second homes come into play not only for this year but every year. These shifts can affect the market because they contribute to the pricing of homes, and investment potential in any given area. These key demographic trends are influential and interesting to watch as they fold into different decades.
Next up, we have the pandemic and the economy. Not only did the global Coronavirus pandemic change the way of living amongst every American citizen, but it has also had a major structural impact on the economy and the real estate market––factors such as investing, remote-working, and how that has now affected the home buying market. According to Pew Research, “71% of workers are doing their job from home all or most of the time. And more than half say, given a choice, they would want to keep working from home even after the pandemic.” As many major companies move their employees to full-time remote positions, renters and buyers look to have more space as they are spending more time at home. Location and amenities are also crucial when deciding where to call home.
With the start of the new year, we have already begun to see an increase in interest rates. The time of record-breaking low-interest rates is slowly coming to an end as the economy begins to rebuild itself. Rates are still lower than anything we have seen pre-pandemic, so it is still an attractive environment for homebuyers. As rates continue to climb, it is a great time to capitalize on purchasing or refinancing your home.
Sellers Market or Housing Inventory
Last but not least, we will discuss housing inventory. In 2022, sellers will continue to have the upper hand. Multiple offers and bidding wars will continue to be a major trend this year as home buyers continue to look for their dream homes. In almost every state across the country, there has been a high demand for homes and a lack of inventory. Moving into the spring and summer more homes will be listed but will there be enough to meet the increasing demand? That is something to keep an eye on.
What Does This Mean for You?
If you are in the home-buying market, mortgage rates will rise as the year progresses, so the time to buy is now. If you are interested in selling this year, let's get your home sell-ready, because the time to sell is now! Inventory is low, and there are a plethora of buyers looking in your market.
Have a question about real estate for 2022? Reach out to me! My team and I are here to help you get the most out of your home-buying experience.