Well, hello and welcome! Before we delve into the newest real estate trends for 2022, can we first agree that the 2021 real estate market was full of twists, turns, and upside-down roller coaster loops for buyers and sellers alike? Are you still dizzy? Well, while this rollercoaster ride doesn’t seem to be through just yet, home sellers may still possess a slight advantage in the 2022 real estate market, especially for first-time home buyers.
To give you a better start at navigating your home buying process, Commission Express National has pinned seven trends that are in line to shape the 2022 real estate market.
Trends In View For 2022!
1. Trend: Natural Light, Mental Wellness, and Open Spaces
In 2022, think wellness when you think of staging. Zenful earthy colors, plants, and thoughtful designs have become a big deal to homebuyers, and space for things like meditation and yoga, or a spa-themed bathroom are at the top of the list, according to Zillow. Natural light is also paramount, particularly in home offices, as well as kitchen and family rooms.
The numbers: Did you know that a separate bathtub and shower could result in a premium of 2.6 percent on a home’s sale price?
Harder to change fixed features like windows should be free of messy clutter to generate more natural light in apartments. If lighting is still insufficient, consider placing a mirror on the wall in a location that would allow it to reflect light into the apartment. Or you could simply hang sheer curtains.
2. Trend: Cost-Efficient Housing Matters —- But Will It Be Volatile?
In 2021, mortgage rates plummeted to just under three percent, which assisted in offsetting elevated listing costs. So it is likely that mortgage rates, as well as home purchase prices, will go up.
The Numbers: According to Realtor.com, by the end of. 2022, mortgage rates will have inched up to 3.6 percent. But for now, you may continue to see boosted home purchase prices at an increase of roughly 2.9 percent in 2022. But according to Realtor.com, by the traditional indicators, an income growth of 3.3% by year’s end looks promising.
For Home Purchasers: Make sure to do your own research to choose a lender with a combination of low fees and rates, then go ahead and apply for mortgage pre-approval, from your top three choices. Not a pre-qualification, but a pre-approval, there is a difference.
You should receive an offer from your lender in writing, which displays how much home you can afford with an affordable, customized interest rate and a breakdown of related fees.
3. Trend: A Seller’s Market With An Enhanced Outlook for Home Purchasers
In 2022, you can likely expect home inventory to remain tight, as it is currently a seller’s market. However, analysts at Realtor.com have predicted that the market will rebound in 2022 with a growth rate of about 0.3 percent.
The Numbers: A good way to gauge the market is to look at how long a home has been listed. Currently, the median seems to be around 49 days, while according to HousingWire, the typical time on the market is from 85 to 100 days.
For Home Purchasers: Allow yourself some wiggle room in case you find yourself in a bidding war, and you need to go slightly over the listed purchase price. Also, don’t overlook homes on the market for over 25 days, as the seller may be willing to lower the price the longer the home is on the market, and be sure to pay for a home inspection.
4. Trend: In Some Markets, A Starter Home Could Be Less Than Renting
Ever heard the saying “catch-22”? Well, that sort of fits here; you see, the price of homes is on the high end right now, so potential homebuyers are looking more at rental spaces that are open and bright, rather than purchasing, at least until home prices start to decline.
The Numbers: Would you believe that out of the 50 largest metropolitan areas, 24 have rents higher than starter home mortgages? I know right! But according to Realtor.com, these particular markets had a potential monthly mortgage payment of about $216 less than rent. The markets where it looks to be more affordable to buy than rent are:
- Cleveland, Ohio
- Orlando, Florida
- St. Louis, Missouri
- Birmingham, Alabama
- Pittsburgh, Pennsylvania
It is, however, still more cost-effective to rent than to buy in tech cities like:
- Austin, Texas
- San Jose, California
- San Francisco, California
For Home Purchasers: One thing to note: unlike renting, when you become a homeowner, you’re responsible for all breakdowns, such as:
- Mowing your lawn
- Water heater repair
- Shoveling your own snow
- Repairing kitchen appliances
Consider creating an emergency appliance fund and deposit a set amount each payday. It’s better to be safe than sorry.
5. Trend: More Interior and Exterior Space
COVID-19 seemed to have caused many people to swap packed cities for a spacious suburban home. Due to the new construction of larger, more open-spaced homes, the suburbs remain in high demand.
The Numbers: According to Realtor. com, spacious, suburban single-family homes have become a hot commodity for home buyers, and have risen by 42.1% since the pandemic began.
Advice for Home Purchasers: Research to see if any new construction homes are being built in your preferred area or neighborhood.
6. Trend: Buyers Are Compromisers
Due to low inventory in an active and competitive housing market, many homebuyers are compromising and opting for homes that could use some improvement.
The Numbers: As per Zillow, 81% of homebuyers have made compromises to their “dealbreaker” home purchase list, and ¾ are considering home renovations instead, which include:
- 52% Bathroom renovation
- 42% kitchen renovation
- 31% adding/enhancing home office space
Advice for Home Purchasers: If you’re indecisive, consider using the 80/20 rule. The 80/20 rule simply implies that if a home fulfills 80 percent of your must-haves, go ahead and make a bid.
7. Trend: iBuyers are Progressing
iBuyers are simply realty agencies that basically allow consumers to swiftly buy and sell on-demand. iBuyers will purchase your house at a cost set by their algorithms. This technique allows the consumer to make an impromptu, non-contingent, or cash-like offer at will.
Commission Express collaborates with the topmost real estate brands to deliver you the cash flow management tools you ought to possess for success. Commission Express also comes with more than one hundred five-star Trustpilot reviews.
So don’t worry about when you’re getting paid, instead focus on closing more sales, and we’ll handle the commission. What are you waiting for? Contact us today! In the meantime, check out greater articles on our blog right here.