The wild roller coaster that was the 2021 real estate market has had buyers and sellers buzzing for a minute, and it’s not quite over yet. All parties must remain seated and buckled at all times! This year might not have as many twists. but it definitely maintains its own momentum. While sellers still have an advantage in 2022, according to experts, the market is starting to relax for first-time buyers. We’ve identified eight trends that we believe will continue to shape the market, and paying attention to them will help you navigate the home buying and selling process.
- It remains a seller’s market. – Although sellers do not expect multiple offers before noon on the same day the property goes live, as was often the case in 2021, the highest and best is always requested at some point in the Thurs. A good way to take the pulse of your market is to check how many days a home has been on the market. If you’re having trouble finding a home due to inventory and you keep losing offers, try looking at homes that have been listed for more than 21 days. Although buyers understandably think there is something wrong with homes that have been for sale for so long, in general they were overpriced and properly retuned. If you visit the property, you might be pleasantly surprised.
- Functional features like mental health spaces will dominate. – Designs that promote overall well-being will feature prominently in homes, and these self-care and self-love items will have a high premium, for example a spa-inspired bathroom versus to an ordinary bathroom. According to Zillow, a freestanding tub can lead to a 2.6% premium on the overall sale price of a home compared to a regular tub. Think minimalist meets zen and expect to see homes fed with natural sunlight and staged with faux plants as greenery.
- Affordability is unpredictable. — Experts predict that house prices and mortgage rates will continue to rise. Be sure to do plenty of research when looking for a local lender in your specific area that offers a healthy combination of low rates and low fees.
- Secondary residences take precedence over the main residence – Zillow predicts that Gen Z and Millennial buyers will be more likely to be interested in buying what would naturally be considered a “second home” before investing in a primary or permanent personal residence. The logic is simple: Remote work options are on the rise, along with the desire to make money by renting out unused space. (Think Airbnb.) Today’s generation of home buyers aren’t looking for suburban connections to big cities, but rather vacation homes as investment opportunities in rural areas that can help them build equity in the interval.
- The rent is up — According to realtor.com, demand for rental housing is driving up rates across the country. Buying a first home may be more affordable than renting in some of today’s markets. However, this can be a bit of a catch 22, as house prices are so high, increasing rental demand.
- Outwards — Since the pandemic, buyers are heading directly to the suburbs. Realtor.com reports that viewers of suburban home listings are up 42.1% since the start of COVID-19. The average size of a single-family home also increased, up 6.2% to 2,541 square feet, according to the National Association of Home Builders.
- The art of compromise — With home inventory remaining low, buyers are learning to settle for less when researching their purchase. According to Zillow, 81% of buyers had to make one or more compromises to close the deal. That being said, real estate agents often suggest using the 80/20 rule when looking for a house. If a home meets 80% of your search criteria, your real estate agent will suggest you consider making an offer.
- Buying a home takes time. “Don’t expect your new home to fall on you. On average, a homebuyer will visit 15 homes according to an OpenDoor report, whether it’s done virtually or in person. Remember that pictures can be deceiving. Always visit the house and neighborhood in person and at different times of the day, and be sure to do so before the time runs out.
If you’re selling, remember to clear your home of clutter, leaving bare counters and exposed windows to let in as much light as possible. Remove all personal items such as photos and murals, so potential buyers can better imagine their own belongings in the space you will be leaving.
And buyers and sellers alike, be sure to let your real estate agent know your priorities, constraints, and schedules. Communicate your needs and project a timeline if possible. By doing this and keeping the above trends and recommendations in mind, you will be in the best possible position to enjoy the ride!
To contact me, call 708-583-8300, email firstname.lastname@example.org, or visit the brand new www.zerillorealty.com.
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