If you’re into fast-paced surges and intensity, then 2022 is your year for real estate. But don’t be intimidated. For both buyers and sellers, there are pros and cons. The key is to pay attention, learn, know what you want, and act intelligently.
Be smart! Take what’s happening and work it to your full advantage. Check out this year’s trends, and use some of these helpful tips to get the edge in today’s market.
Riding the coattails of 2021, 2022 is carrying on with its seller’s market. Expect quick turnarounds and red-hot prospects. However, the waves aren’t expected to be as extreme since 2020’s curve-ball. Though a drastic change isn’t anticipated, you can look forward to a milder year. For best results, stay continuously updated by researching, studying, gathering data with Zillow proxies, and making informed decisions.
Since 2020, the job market has taken a dramatic turn. In-house careers turned into at-home work, but the change hasn’t been temporary so far. Employers and employees alike realized that much could be done outside the sterile office environment, and productivity actually increased. Therefore, many companies have encouraged the continued practice of working from home.
Because of this, the amount of people needing to live in cities or on their outskirts has dramatically decreased. Suburbs are going to be a continued real estate trend. Buyers show less interest in commuting distances and increasing their search distance parameters.
This is beneficial for several reasons, including the ability to find an area with more affordable house prices and costs of living. Thanks to the pandemic shift, a versatility like never before has been introduced to the market, and it’ll be sticking around for a while.
The housing market doesn’t favor the younger crowd right now. Overall, millennials are coming of age to buy their first homes, but real estate isn’t planning on cutting them any slack. While it’s true that baby boomers plan on staying in their homes without intent to sell, the problems young buyers face mainly have to do with costs.
Yet there are steps anyone can take to improve the chances of homeownership. It’s a given that saving as much money as possible is critical, but a few other measures will equally help the odds.
- Increase Your Credit Score
Be patient and take the time to boost your credit score. Set up automatic bill payments and keep old credit lines open. Download a credit-tracking app to monitor your behavior and improvement.
- Go Small
Your best bet regarding affordability is to find something that isn’t overwhelming. Focus on what you need without going overboard in size and cost. As you get older, you can always upgrade.
- Do Your Research:
Houses going to market are scarce and won’t last long, so don’t count on any of them as options. The “coming soon” listings are where you need to search so you can be ready to pounce if it’s the right place for you.
- Look Into Down-payment Options
You want to put at least 20% down on a new home. However, this may not be feasible. But there is help! Assistance programs and incentives for certain demographics are available if you do your research.
It’s no secret that the cost of buying is going up: this year will see an almost 3% hike for the housing market. Interest rates are paralleling and even surpassing this trend. The estimate of a 30-year mortgage by the end of 2022 could reach 3.6%, which is higher than in 2021. Though this seems entirely negative, it actually shows promise!
High interest rates and real estate costs eliminate the vast majority of speculative buyers. In other words, those wanting to make a purchase tend to be potential homeowners and not companies. Though it may take a bit of time to even out, this will eventually bring the market back to more realistic buying and selling conditions, loosening the tight supply-and-demand constrictions.
Whether you’re in the market as a buyer on the prowl or a seller who will use this proxy to up your game, these trends are important to watch. Spending the time and effort now to learn real estate’s 2022 ebbs and flows is an investment that will pay off in the future.