As you’re aware, the real estate industry has been quite the wild ride the past two years. Interest rates plummeted, home demand went through the roof, and supply bottomed out. As an agent whose job is to keep up with the trends and keep your buyers and sellers happy, it’s been enough to wear you out.
Will 2022 be much of the same? Or, will things slow down a bit to allow you to be steady but not slammed? Will new real estate trends emerge to change how your clients buy or sell homes or keep them out of the market altogether this year?
Knowing what could happen before it happens positions you as the expert to your clients. You can help them nimbly navigate the buying or selling process while saving them stress and frustration.
We’re here to help you help them. Our team is always looking ahead to emerging industry trends. Not just as they relate to mortgage loans but also those that affect all facets of the real estate industry. That allows us to share important information with our fellow professionals to benefit clients – yours and ours.
To that end, this blog will summarize some of the trends that industry experts are expecting to impact the market in 2022. Use this information to get ahead of your competition and ensure your clients know that you’re on top of what’s happening and how you can help them use it to their advantage.
Crypto mortgage market emerging
The interest in cryptocurrency is exploding in the investment world. But it’s not just staying there – it’s starting to become more common in the real estate world, too.
According to Redfin data, almost 12 percent of first-time homebuyers in 2021 sold some sort of cryptocurrency to fund their down payment. That’s up from less than 5 percent pre-pandemic. Be on the lookout for those younger home buyers looking to cash in all that crypto for a new home.
Wave of foreclosures isn’t coming
Some savvy home buyers were staying out of the traditional market in hopes that they could capitalize when low-cost distressed properties hit the market once homeowners come off forbearance in the coming months.
But that doesn’t look like that’s going to happen.
According to a report from ATTOM Data Solutions, foreclosures were down 8 percent in December 2021 from the month before. That means if your clients are ready to buy, they’ll have to do it the old-fashioned way. And you’ll be prepared to help.
Buying second homes before their first
Here’s a trend you might not have seen coming. Zillow predicts that Gen Z and Millennial buyers will be interested in buying what would traditionally be considered “second homes” before investing in a primary residence. Why does this make sense?
Now that remote work is much more accepted – and even encouraged for some – employees are no longer bound to big cities. That means they are looking for more affordable destinations to live, sometimes even part-time.
First-time buyers who aren’t ready to commit to a full-time move are looking to own a part-time vacation home or investment property that could help them build equity while they figure things out.
Buyers are making compromises
The 2022 buying market might not be quite as competitive as the last two years, but it’s not like dream houses will be growing on trees. As a result, some of your clients who want (or need) to relocate could be willing to compromise on some of their must-haves.
According to Zillow, 81 percent of buyers have had to make one or more compromises when buying in the hot market. If you have clients facing indecision about making an offer on a home that’s close to what they really want but not quite their dream home, tell them about the “80 percent rule.”
Suggest that they list their 10 most important features or must-haves and follow the 80/20 rule. That means if a home meets 80 percent of their criteria (all things being equal), they should consider making a bid.
That will save them some grief and the frustration of spending months and months looking for their dream home that they may not secure with a winning bid anyway.
These are some of the trends to keep your eye on in 2022. Staying ahead of the curve will help you be more successful this year as you make your clients’ home buying or selling experience a positive one.
Ilyce Glink and Samuel J. Tamkin. (2022, January 20). Perspective | real estate trends to watch in 2022. The Washington Post. Retrieved February 8, 2022, from https://www.washingtonpost.com/business/2022/01/17/real-estate-trends-watch-2022/