What if you could give yourself a raise next year?
2021 was a banner year to say the least. Home prices soared, and demand was at an all-time high. Hopefully, you rode that wave to a new career high as well. So, how can you possibly plan to have an even bigger year in 2022?
This blog will highlight a few key things you should think about or develop plans for now (right now) so that when the new year begins, you’ll hit the ground running toward a higher income than ever.
Look ahead to the 2022 market
The home market in 2021 was hectic. There were too many buyers and not enough sellers. Home prices surged by nearly 20 percent during parts of the year. Interest rates were at or near historic lows. There were plenty of bidding wars, which was likely good news for you and your sellers.
Will 2022 be as wild of a ride as last year? That’s important to know if you’re going to set objectives, develop strategies and help your clients accomplish their goals.
Industry experts predict that buyer demand will remain strong as families look to buy before interest rates and home prices climb. That means 2022 should be another strong year for home sales.
According to data compiled by various experts in the industry, here is a quick look at what’s expected in 2022 for the most critical factors that impact the home market.
Interest rates: Experts predict rates will rise in 2022 but remain historically low. Projected rates are:
- Fannie Mae: 3.3 percent
- Freddie Mac: 3.5 percent
- Mortgage Bankers Association (MBA): 4.0 percent
- National Association of Realtors (NAR): 3.5 percent
Home prices: Home prices are expected to rise because of continued low housing supply and high buyer demand. Projections include:
- Fannie Mae: 7.4 percent
- Freddie Mac: 7.0 percent
- MBA: 5.1 percent
Home sales: Sales may not be as crazy as in 2021, but people will still be ready to move in 2022 to meet their changing needs or embrace the ability to work from virtually anywhere. Home sales projections (and how they compare to 2021 actuals) from the foremost industry experts include:
- Fannie Mae: 6.8 million in 2021; 6.5 million in 2022
- Freddie Mac: 6.8 million in 2021; 6.8 million in 2022
- NAR: 6.8 million in 2021; 6.8 million in 2022
- MBA: 6.9 million in 2021; 7.3 million in 2022
Knowing what’s coming will help you plan and educate your clients about the pros and cons of buying or selling in 2022.
Fixer uppers: Due to the hot market, move-in-ready homes in 2022 are going to be hard to come by. This will force buyers to gravitate toward fixer uppers. When taking on a project like that, many buyers will heavily consider location. So, keep in mind when they are looking for new properties, they will likely consider their return on investment and look in areas near:
- Up-and-coming areas
Time on the Market: As the high demand and short supply of homes continue in the new year, the market will continue to be hot. As a real estate agent, you will have to be vigilant in your efforts to converse with clients and jump in on offers for homes they are interested in. The average home is expected to spend just a few weeks on the market in 2022.
Review 2021, preview 2022
Without knowing where you ended up in 2021, how will you know where you want to go in 2022? Before the new year even starts, look back at your successes and setbacks from this year.
What worked and what didn’t? Did you meet all your goals? What challenges did you encounter that you can avoid or overcome in 2022?
We recommend that you audit this year’s performance and evaluate your business to see what needs improvement. Then, you can adjust your strategy and business plan for 2022 to set yourself up for success.
Don’t just review the bottom line. Take a hard look at essential variables like appointment scheduling, time management, marketing, and efficiencies in your business processes.
Define and share your differentiators
As you know, you’re not the only real estate agent in town. There are many licensed, trained, and knowledgeable agents eager to help clients find their dream homes. So why would a family looking to buy or sell a home choose you as their agent instead of the guy at the agency down the road?
The answers to that question are vital to your success in 2022. Take time to outline the skills, experience, or intangibles that make you stand out from your competitors. Take inventory of your differentiating factors that bring value to your clients.
Maybe it’s your expert home staging skills, marketing prowess, effective use of video home listings, or the uncanny ability to find just the right home for your client in weeks instead of months. Whatever it is that makes you shine brighter than other real estate agents, be sure current and potential clients hear about it.
As you plan for 2022, use these recommendations to build on your success this year. Start putting together a strategy now to get ahead of the competition.
Time. (2021, December 8). How 4 experts say you can prepare now for a busy housing market this spring | nextadvisor with Time. Time. Retrieved December 20, 2021, from https://time.com/nextadvisor/mortgages/mortgage-news/sping-2022-housing-market-predictions/
Real estate agents: 5 ways to grow your business in 2022. RealTrends. (2021, December 14). Retrieved December 20, 2021, from https://www.realtrends.com/real-estate-agents-5-ways-to-grow-your-business-in-2022/
Crew, K. C. M. (2021, December 19). 2022 housing market forecast [infographic]. Keeping Current Matters. Retrieved December 20, 2021, from https://www.keepingcurrentmatters.com/2021/12/17/2022-housing-market-forecast-infographic/?utm_campaign=Blog_Promo&utm_medium=email&utm_source=email-automated&utm_content=DailyBlogSubscription&utm_term=BlogPost