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4 Real Estate Trends to Keep an Eye on in 2022 and 2023
Real estate in 2022 is off to a wild start. With COVID restrictions lessoning, but a lot of uncertainty with the world’s stability and economic impacts, things in the housing market continue to change. In fact, just earlier this month the interest rates dropped unexpectedly, causing an increase in home sales. So, what’s in store for the rest of the year—and beyond? Here are four trends you’ll want to keep your eye on:
Buyer’s May Have Some Breathing Room, but it’s Going to Stay a Seller’s Market
According to experts, inventory is still going to be tight, and that’ll keep sellers in control. However, Realtor.com’s analysists predict that the market will rebound from 2021 lows, with inventory growing 0.3 percent on average in 2022.
Regardless of how things shift, it’s important to advise your clients to give themselves some wiggle room on what they can afford and take advantage of lower rates while they are there. Also, if a home has been on the market for over 21 days, it may be a good time to check it out. Usually after a few weeks, the price will drop to something more reasonable. But as you know, buyers need to act ASAP, and have competitive offers ready.
Housing Affordability Will Continue to Change
Speaking of price, housing affordability over the last year has been a big issue for many buyers. This is why it continues to be a seller’s market. But things continue to change with the market, which is why it’s so important to help your client’s navigate potential opportunities when they arise.
As you know, in 2021 we saw historically low mortgage rates—dipping below 3 percent! This helped even out the higher listing prices. However, rates have increased. And so have home prices. On the flip side, a lot of income has gone up, which for some of your clients, may offset the change in rates/home prices.
Realtor.com anticipates that “…mortgage rates will hover at an average of 3.3 percent throughout 2022, inching up to 3.6 percent by the end of year. Meanwhile, existing home sales prices will continue to increase, rising 2.9 percent in 2022.”
As real estate agents and lenders, it’s our job to help our clients find that “hidden gem” and also be able to afford it. Pay attention to the changing rates, and advise your clients accordingly. And if possible, apply for mortgage pre-approvals, not just pre-qualifications.
House Hunting Will Be Even More Digital
This trend is a no-brainer. When the pandemic hit, digitalization and home buying took off faster than ever. It had to. And it hasn’t stopped since. I’m sure you’ve heard of, or even worked with, home buyers that purchased a home without ever stepping foot inside first. Years ago, that wouldn’t even have seemed possible.
Today, agents are guiding their clients through virtual capabilities including 3D Tours, Virtual Staging, Drone Videos and more. The digitalized process for buying a home doesn’t stop there. All areas of homebuying have been influenced. Getting a mortgage can be done all online, and even the final step in the homebuying process—the settlement—is now being done virtually. For example, at Velocity Title, we now offer Remote Online Notary (RON) for seller signings and cash purchases. You can join your clients virtually as they conduct their settlement from the place of their choice. To learn more, click here.
From Cities to Suburbs
With the pandemic becoming part of our normal life, and more people able to work from home, many of your new clients most likely have been people looking to leave the city life and move to the suburbs. This trend won’t slow down in the years ahead.
According to explodingtopics.com, “The biggest metro areas, like New York, San Francisco, and Washington, DC, are likely to rebound once the US is firmly on the other side of the pandemic. But the trend of opting out of big city living may persist for the next 3-5 years.”
The two main reasons for this migration are personal choice, and personal necessity. Some people are ready for more space, lower taxes, and a more private lifestyle. They are choosing to relocate because they want to. Others have lost their jobs or have a job-transfer, or the cost of living has become too expensive. They have to move for necessity. Either way, people are migrating to the suburbs and as real estate professionals, we need to accommodate this shift for our clients. You can do this by:
- Staying connected to your contacts in the industry—is there a new subdivision opening? Does your realtor friend have some individual lots for sale in an ideal county?
- Use social media to showcase the happy client’s you’ve helped in the “suburban” areas of your market. By focusing on your success in this market, can you attract new clients looking to achieve the same thing.
- Networking is coming back, get to know your colleagues on a personal level again and see how you can work together to grow your businesses.
As the year continues on, and the housing market braces for Spring and Summer, more shifts are bound to take place. Velocity Title will continue to monitor the industry, and keep you up-to-date on the latest trends and updates.
Velocity Title Moves Your Business Forward
Velocity Title supports the real estate industry with a comprehensive line of title services that add value to each and every transaction. At Velocity Title, Our Personal Support Makes You Look Good Every Time! With a focus on the best CUSTOMER EXPERIENCE, Velocity Title incorporates leading title TECHNOLOGY and EXPERTISE into every transaction—enabling the final step in the home buying process to be EASY, EFFICIENT and INFORMATIVE. For the perfect settlement experience every time, click here or contact us today!