What was changing in the real estate market in 2022? Here is a blog post from that dynamic time.
In real estate, the only constant is change. A variety of factors shape the market you see today, including social, political, economic, and more. Staying on top of it all requires close attention because even information that you found six months ago may be outdated. If you are thinking about buying or selling a home, be sure to read these seven real estate trends in 2022.
1. Mortgage Interest Rates Are Increasing
Low interest rates on mortgages contributed to an explosion in the real estate market, particularly in 2021. Since the beginning of 2022, interest rates on most mortgages have nearly doubled. Some regions are seeing dips in demand as people’s buying power is decreased. Cash buyers and investors are taking a larger share of the market since they aren’t as dependent on changing interest rates.
2. The Housing Shortage Continues
With increasing home prices and interest rates, you might think that demand has dropped. The shortage of housing, due to supply chain and access to labor in the construction industry, means that many areas still have more buyers than available homes. A national realtors group notes that there were about two-thirds as many homes listed as available in June 2022 than in June 2020, and less than half the amount available in June 2019.
3. Home Prices Continue to Rise
Consistent demand leads to increases in home prices, which will likely continue in 2022. The national central banking system reports that national median home prices rose from about $370,000 in early 2021 to nearly $430,000 in early 2022. The house market trend for 2022 indicates that prices will grow throughout the year, but probably not quite as much as it did in 2021.
4. Buying Online Is Easier Than Ever
People have been searching online for homes for years, but the pandemic kicked it into gear. Interest in 3D tours and online mortgage applications exploded in 2020. In areas with the highest demand, buyers may decide about a home without seeing it in person. Of all the housing trends for 2022, this one puts pressure on sellers to make their digital listings perfect.
5. Rental Markets See High Demand
Although the rental market dipped in 2020 due to the pandemic, it’s back and increasing quickly. Prices for one-bedroom and two-bedroom apartments have jumped by more than 25 percent from June 2021 to June 2022. About 95 percent of states have seen growth in the past year, with lower-population states like South Dakota, Utah, and Idaho reporting the greatest increases in average rent.
6. Buyers Are Leaving Big Cities
High home prices and other effects of inflation have led hundreds of thousands of people to leave cities with the largest populations. Improved accessibility of remote work and skyrocketing home and rent prices led many to leave high-cost areas like New York City, Los Angeles, San Francisco, and Washington, D.C. in favor of places that are more affordable.
7. Sunny States Reign Supreme
Although people are expanding into any state with a lower cost of living, the states in the Sun Belt are getting the most attention. States like Florida and Texas have become popular for people to buy homes to live in or invest, due to the lower costs in these states compared to California or Arizona.
If you’re planning to buy or sell your home, you need an expert to help. At Marketplace Homes, we make it easy to achieve your goals. For more information or to buy a home, contact us today.