Real Estate Trends for 2022 You Should Be Aware Of
By Space Coast Daily // August 10, 2022
The real estate market is a large one that faces chances every second that passes. The industry is filled with favorable and unfavorable situations. As we celebrate technological changes in the industry, it is fair to know what’s trending in the 2022 real estate world.
It is a difficult task to have accurate data on estate market change. And the pandemic is one factor that has caused a shift in the industry. Another factor is the lack of adequate research to back up facts. However, there are many things to learn from estate news in 2021, which signifies that anything is possible.
Awareness of these 2022 trends can save time, money, and expectation. Trends affect the market in different ways like prices, location, requirements, and choices. Generally, the market is headed somewhere, and we need to be informed to make better decisions. Besides, a well-predicted trend will make you money and save you the stress of researching for a favorable property. Here are real estate trends to expect in 2022.
1. Estate Agents Are More Important Than Ever
Agents are becoming expensive because of their importance. They can follow trends before it occurs, giving them an edge over you. They can clarify directions and find where it is suitable for their clients. Hiring expert East London estate agents will put you on top news and trends in the industry.
Besides, you’ll be able to get the best price for a property if you hire an agent with knowledge of basic estate trends. These people are tasked with providing first-hand services to favor their clients.
2. Prices Are Rising
Home prices seem not to be cooling. People are getting homes for an average of $280,000 before the pandemic. Afterward, the prices have risen to $362,000 as of June 2021, a 29% increase in price. The speculative marketing terms of 2020 and 2021 have made it easy to predict that home sales in 2022 will rise by 2.8%.
The appreciated price is an advantage to many. It’s a motivating factor for Americans to buckle up on getting home to avoid bidding wars. It is difficult to keep a 20% increase in a year, and there is no indication of the price dropping. No reliable factors indicate that the market will be dropping any time soon.
3. Home Values Are Increasing
Home values are increasing without an obstacle. The home price trend is rising, just like groceries and gas. The average home costs about $363,000 as of 2021. The rate of increase towards the end of the year is alarming. There was a 23% increase from April and June of 2021 and a 16% increase from July to September of the same year.
The trend increased supersedes the growth of September 2020. The trend is speculated to continue in 2022. Prices are predicted to rise slowly compared to 2021, but the rise will continue. Sellers are to benefit more from this market trend, and buyers are to seek possible advice on getting the best prices.
4. Mortgage Is Low
The mortgage collected by loan companies on homes has drastically reduced. The drop is favorable to homeowners. For instance, a 15-year fixed rate mortgage has a 2.2% reduction in mortgage as of January 2021, the lowest ever recorded in 30 years. The rates are between 2.12% and 2.4% throughout 2021 but expect a slow rise by the year-end. But they are expected to lower in 2022.
However, there are speculations that the Federal Reserve will hike a 30-year mortgage by 3.5% by 2022, making it preferable to have a 15-year home mortgage. People are to expect a low-interest rate on mortgages. The reduction will save homeowners some money.
5. Home Ownership Is on The Rise
The reduction in the mortgage, rise in price, and increased home value has forced many people to become homeowners. The 2021 trend is expected to double in 2022. Many regions are facing building construction or high rates of the home purchase. A circulation of entry-level homeowners and more are trooping in before the year runs out.
For instance, millennials and Hispanics occupy more space in the real estate world. Homeownership is increasing as everyone intends to make a gain by selling properties.