In 2022 several trends will shape the housing market as people continue to modify their habits that best fit their needs in the ever-evolving face of the pandemic. While lifestyle will be considered as a major housing trend in 2022, so will price point and housing availability as demand remains high and supply struggles to keep up. Below are the top five housing market trends to be on the lookout for in 2022 so you can pinpoint where you can generate leads to best fit your clientele.
1. Housing Supply Shortages
Active home listings have fallen 27% nationally in January 2022 compared to listings available in January 2021, but that’s not yet a cause for panic. Housing inventory is currently low, but projections state that many people have been getting their homes ready for sale and looking to list their homes on the market once we fully kick off the new year. Georgia’s housing market may also see a decrease in available listings due to high housing demand with the average contract being signed within the first few days of listing. With those facts in mind, being prepared with a pre-approved loan amount and realistic expectations about the buying and selling process will most benefit potential homeowners.
2. 2022 Will Remain a Sellers’ Market
As mentioned above, real estate will continue to be a seller’s market. With supply remaining low and most buyers making cash offers above asking price, sellers will retain the advantage in transactions as people are still looking for a home that is remote work and family friendly. Also, mortgage rates are still at an all-time low, which promotes buyer’s eagerness to purchase as soon as possible to get a good deal in the already competitive market.
3. Price Appreciation Will Remain Steady
While home sale prices rose 14% at the beginning of 2022, price appreciation will continue to grow more steadily than the previous year. Price appreciation will remain steady due to inflation and pandemic subsidizing, as 30-year-fixed mortgage rates slowly rise from 3% to 3.6%. Also, world health leaders continue to promote social distancing and remote work remains popular, causing housing demand to steadily climb, thus creating upward sales prices.
4. Lifestyle Changes Will Drive Buying Decisions
As people continue to work and learn from home, these shifts in daily life impact what people want in terms of space. And are willing to pay the price. Luxury and custom-built homes are rising in many areas as homeowners desire the separation of work and play. This might include an extra bedroom used as an office or an oversized garage so people can workout at home instead of going to a crowded gym. Besides wanting extra indoor space, people are also looking to upgrade their outdoor spaces. Since more people are working from home, there is less need to worry about commutable distances and more focus on what amenities they can enjoy while nesting in their version of paradise.
5. Rising Rent Prices In Large Cities Is Driving An Influx Of Home Buying In The Suburbs
Rent prices have a projected increase of 7.1% in 2022 and now that your average apartment is becoming less affordable than a fixed mortgage rate, more people are looking to buy. The suburbs offer more bang for your buck in terms of price per square footage, giving way to more people moving from crowded and high-cost apartment living; and opting for cheaper and more spacious options. People are also looking for better schools and outdoor activities that many crowded cities aren’t able to offer.
While the housing market continues to fluctuate, prospective sellers and buyers both face many advantages when it comes to their housing adventures in 2022. The market will remain steady and hopefully continue to grow as the year passes, thus creating opportunities for anyone wanting to dip their toe in the world of real estate.
Posted in GAMLS