2021 saw many homebuyers drop out of the market. This was unsurprising considering less than 30% of Americans thought it was a good time to buy a property. On top of that, property prices grew by almost 20% year-on-year. But what will 2022 have in store for the real estate market?
Foreclosures will Increase
The U.S. put a ban on foreclosures at the start of 2020. They were legally allowed again from the start of August 2021, however many lenders put a halt on them until the end of the year. But there is expected to be a large increase in them in 2022. Four in ten people say they think there will be more foreclosure properties for sale next year. The public aren’t concerned about buying these types of properties either. A recent study found that 62% of people would consider investing in one. Plus, 250,000 people who were part way through the foreclosure process before the ban are currently being put back into the process.
Property Prices will Rise
In November, Zillow predicted that house prices between October 2021 and October 2022 will rise by 13.6%. Goldman Sachs predicts a similar annual growth of 13.5%. The good news is this is a lot lower than the 19.9% rise seen this year. But it does mean property is becoming more unaffordable for some Americans. There are, however, some options for these potential buyers.
As more people are pushed out of the market, home purchase loans will become more common. If you haven’t heard of this type of loan before, you might wonder what is a home purchase loan? Home purchase loans are when the seller and buyer come to a financial agreement together. No mortgage lenders are involved. Instead, the seller may let you take over their mortgage or you may be able to pay regular installments to the seller directly.
More Options
There has been a shortage of houses on the market recently. Fortune reports that between April 2020 and April 2021, inventory dropped by more than 50%. This meant that buyers were having to make do with what was available. Many were also losing out on properties due to bidding wars and buyers offering to make cash purchases. All that will change in 2022 if current statistics are anything to go by.
In September, there were more properties on the market than there had been all year – a sure sign that things are picking up. Nicole Bachaud from Zillow predicts 2022 “will probably be a little less stressful for buyers as there are more options”. More options mean less competition and a better chance of securing a home. Plus, there will be even more housing options for buyers if the number of foreclosures increases as predicted.
2022 will be an interesting time for real estate. Some trends from 2021 will continue into next year and beyond. However, some things will take a whole new direction.
As the real estate market continues to evolve, many are wondering what the future holds for the industry. With the pandemic still in full swing, the real estate market has been hit hard, but there are signs of recovery. As we look ahead to 2022, there are a few key trends that are likely to shape the market.
One of the biggest trends that will likely continue into 2022 is the rise of remote work. With more people working from home, there is an increased demand for larger homes and more space. This has led to a surge in suburban and rural real estate markets, as people look for more affordable housing options.
Another trend that is likely to continue into 2022 is the rise of technology in the real estate industry. Technology has already had a major impact on the industry, from virtual tours to online home searches. As technology continues to evolve, it will become even more important for real estate agents to stay up to date on the latest trends and tools.
The pandemic has also had a major impact on the real estate market, with many people unable to buy or sell homes. This has led to a decrease in home sales, but there are signs that the market is beginning to recover. As the economy continues to improve, more people will be able to buy and sell homes, which will help to stabilize the market.
Finally, the real estate market is likely to continue to be impacted by the changing political landscape. With the Biden administration in office, there is likely to be an increased focus on affordable housing and other initiatives that could benefit the real estate market.
Overall, 2022 is likely to be an interesting year for the real estate market. With the pandemic still in full swing, the market is likely to remain volatile, but there are signs of recovery. As technology continues to evolve, it will become even more important for real estate agents to stay up to date on the latest trends and tools. Additionally, the changing political landscape could have a major impact on the market, as the Biden administration focuses on affordable housing and other initiatives.
