Of all of the things that have been going on over the past year, real estate is one of those markets where you can use market predictions to your advantage. Regardless if you’re planning on buying a new house, making renovations, or if you plan on selling your house as is. We’re going to go over HomeLight’s End of Year Report and give you a quick peek at what is likely to have an impact on 2022’s housing market.
Buyers include contingencies
At the height of the seller’s market, buyers needed to come with their best offers from the get-go. They’d offer above asking price (sometimes way above asking!) and they’d forego the usual contingencies that would provide them with a no-strings easy out.
These contingencies, particularly the home inspection and appraisal, are now being reintroduced with contracts because buyers are experiencing fatigue. They’re more wary of the high housing prices and if they’re serious about moving forward with a purchase, they want to make sure the house is actually worth what they’re going to pay. Or, even if they’re willing to pay more, they want to know they’re not spending a small fortune on a property that would be better off torn down entirely.
Bidding wars are less common
From the start of the pandemic, bidding wars were a very common occurrence, which was incredible for sellers for a multitude of reasons. However, this is slated to be one of the biggest changes going forward. When you take into consideration that buyers are more cautious about prices, they’re going to hold out for a good deal. They aren’t going to get into a bidding war which could drive the price up even further!
With that said, realtors still anticipate some competition among buyers, albeit at a much lower capacity. They believe properties are likely to only get a small handful of offers, rather than the dozens they may have received at the start of 2021.
Inventory may take time to replenish… still
Inventory is still playing catch up, but as more people feel confident in the containment and management of COVID, realtors believe seller activity will increase over time. Another factor that could help to replenish the housing inventory is the effects of the foreclosure moratorium being lifted. Although it’s been lifted for several months (since July 2021), we have yet to see the true impact it’s bound to have…
Folks use pandemic savings, trust funds, and stocks to buy
Our relationship with money has changed quite a bit since the start of the pandemic and 46% of realtors say their clients are using their pandemic savings to buy property. But, then we have 45% of agents say their clients are tapping into trust funds or asking for help from a wealthy family member.
Of course we can’t forget how well the stock market was doing! 37% of realtors say their clients who did really well in the stock market are taking their gains and using it to buy property.
Realtor predictions aren’t set in stone
There’s a lot to take into consideration when you want to do anything in real estate. Not only do you have to factor in your finances, where you are in life, and what the market is like where you want to go… You have to think about outside forces that are completely out of your control as well.
With so much to think about, reading predictions like these are a fine place to start. However if you want to make moves based on what’s best for you, you need to consult a local realtor. They’ll give you the scoop about what the market is like, the trends, and where it’s headed. Of all the things you need to think about, finding a well-known and respected realtor in your area (even for advice!) should be the first thing you focus on!