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Home investment

What Top Real Estate Agents Predict of the 2022 Housing Market

admin by admin
March 22, 2022
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Housing-Predictions 2022

The past few years have been tumultuous — to say the least. Americans had to navigate the fluctuating restrictions due to COVID-19 and its variants, which brought with it plenty of financial hardships. However, for the time being buyers and sellers can expect some stability in the housing market. Home prices are high across the country, and both buyers and sellers should prepare for a strong, competitive market.

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However, top real estate agents across the country foresee some changes to the housing market in the next coming months. Keep reading to see what the top minds in the industry expect to change or remain the same in 2022!

Where can we expect stability?

While buyers will still be entering the market in waves throughout 2022, we shouldn’t expect sellers to match the inventory with the heavy demand. Therefore, home prices will remain high — at least for the first and second quarters.

Thanks to the strong property values, sellers are highly incentivized to enter the market. While some realtors see home prices dropping in the back half of the year, the majority of real estate agents — 83% — expect consistency instead, predicting 2022 to remain a seller’s market. If you’re thinking of selling in 2022, now’s a great time to sell for a high price before inventory inevitably spikes.

Additionally, agents predict cash sales, which certainly left their market in 2021, to persist throughout 2022. Cash is king in the current market, and since buyers have been relocating to more affordable areas, small towns are cash-heavy markets.

Where should we expect to see change?

From the volatile workforce to shifting housing interests — there’s plenty that could affect the market in the coming year. Since a growing number of employees have been leaving their jobs, expect a noticeable effect on the housing market as people relocate for new jobs or remote work. This could lead to a high demand in mid-sized cities or suburban areas as people flee the cities in favor of more space and lower property prices.

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In addition, agents predict political and social factors will play a larger role in home-buying preferences in the new year. Buyers are now particular about purchasing housing in either red or blue districts, especially from younger generations. This year, expect more engagement from Gen Z, who will be targeting mostly blue areas.

To the dismay of many buyers, interest rates will most likely begin to increase as well. However, while these have been a major incentive for buyers to enter the market, we shouldn’t necessarily expect demand to diminish. As noted, the fluctuating workforce will force plenty of buyers to enter the market and search for alternative accommodation thanks to new work environments.

Overall, property values remain strong and realtors are optimistic about the year to come, though agents predict market prices to taper toward the end of the year. If you’re thinking of dipping your toes in the housing market in 2022, contact a real estate agent today!

 

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