Real Estate Trends in 2022
December 15, 2021 | Stephanie Buss
As we get ready to say goodbye to 2021 and enter a new year, a lot of us are wondering what 2022 will be like in the real estate world. Many experts have shared their predictions, and a few common themes are popping up on various news sources.
Expect to see a slow down in home price growth
Numerous forecasts have suggested home prices in the U.S. will continue to climb in most U.S. cities – however at a slower rate than seen in 2021. The reason: Supply and demand. When we have fewer homes on the market for sale than buyers, prices naturally rise.
However, more sellers are expected to list their houses this winter. According to Keeping Current Matters, buyer demand is still extremely strong and we will see a somewhat uncharacteristic increase in the number of homes coming to the market.
“We definitely see some pent-up seller demand here in Brevard,” says Residential Broker Associate Hesper Dickson. “Homeowners may be more comfortable putting their homes on the market as more and more Americans get vaccinated.”
Higher mortgage rates are also predicted for 2022
Many real estate predictions for 2022 also point to a possible rise in mortgage rates. According to an article by homebuyinginstitute.com, upward mobility among mortgage rates in the U.S is already happening, and the average rate for a 30-year fixed mortgage had climbed above 3% for the first time in months. They’re expected to go even higher in 2022, according to numerous real estate market predictions.
First-time home buyers are still expected to be very motivated to buy in 2022, especially with the increased rise of rent costs. Incomes are also expected to increase along with workplace flexibility, paving the way for more out-of-state buyers who continue to look for homes in rural areas with good home office space and strong Wi-Fi.
Technology continues to be a vital part of marketing
Thanks in part to this trend of buyers looking for homes from out-of-state, digitation will continue to be a very important part of our marketing strategy when we list homes since more homes are being found online and virtual home tours are taking the place of open houses.
According to Tom Rossiter, CEO of RESAAS, “Prior to Covid, using technology was seen by many real estate agents as a “nice to have.” Now it’s simply a requirement to do business. We expect real estate technology to further evolve in 2022, and for both sellers and buyers to use digital tools even more during the entire home-buying process, from listing to interacting with agents to closing deals.”
Team Billy Harris uses Matterport Camera 3D Virtual tours of featured homes, meaning you can virtually tour a home using your computer and feel like you’re stepping foot inside the home. We also use Video with drone footage (when applicable) so you can get a clear picture of the surrounding land around the property, such as breathtaking views and acreage.
If you’d like to know more about what digital marketing tools our agents at Team Billy Harris use, check out our Why Work with Billy Harris page.
Low inventory continues but more homeowners are looking to sell their property
Homes in Transylvania County remain some of the most in-demand in Western North Carolina. While sales are up year to date, a shortage of homes for sale will likely continue to be the culprit to a slowing pace in 2022. We do expect to see an uptick in inventory growth over the coming months with more and more homeowners deciding to list their homes, and more houses being built. But the production of new homes continues to be an issue due to supply-chain snags and labor shortages.
Why it is more important than ever to have an experienced realtor
With home prices rising at a moderate pace in 2022, and mortgage rates also expecting to rise, it is more important than ever to have a trusted real estate agent at your side to help you through this complicated market and simplify the process. Buyers are still seeing multiple offer situations and cash negotiations, and having an informed realtor can help ease the anxiety and help you put your best foot forward.
“You want to make an informed decision, especially when it comes to the local market in Brevard and Transylvania County,” says Billy. “We have that experience – and we live here. We have a valued interest in our community and we want our buyers and sellers to be able to make an informed decision.”