We have to admit, the past two years have been a crazy ride that we’re all ready to get off of. With all of the curve balls that we’ve been thrown, it may feel like there’s no way we can predict what 2022 has in store for us. Even the best laid plans were ruined due to one factor or another.
While we can’t say what’s going to happen in 2022, we can glean a little insight from professionals. In particular, real estate experts can give us some predictions about the real estate market in 2022. Here’s a brief run down of the top predictions that are highlighted in HomeLight’s End of the Year Report for 2021.
Buyers are protecting themselves with contingencies
One of the biggest changes real estate agents are predicting is the re-inclusion of contingencies to offers will increase. During the past couple years, real estate agents in Stamford, Connecticut (and the rest of the country, to be honest) say that the offers that were being submitted didn’t include the usual contingencies that would protect buyers.
These contingencies include home inspections and appraisals, stipulations regarding securing financing, and only moving forward with the sale if the buyer can sell their home first.
Bidding wars are less common than it was in 2021
Real estate agents reported that it was very common for properties to enter heated bidding wars in the past two years. However, 76% of real estate agents are predicting that bidding wars are predicted to be less common because there may be fewer qualified buyers and more houses on the market.
The housing inventory won’t be this low for long
Housing inventory is predicted to increase in 2022, but we can’t say for sure how quickly it will replenish. Agents predict that as the public health crisis becomes more manageable, more homeowners will put their houses on the market to make the most of a strong seller’s market while they can.
It’s worth noting that we have yet to feel the full effects of the end of the foreclosure moratorium. We don’t know if there will be a massive flood of newly foreclosed homes hitting the market at once, or if it will be a slow and steady stream of new listings.
Housing prices will drop… But how fast?
It’s hard to say for sure what housing prices will look like because half of surveyed agents say the prices will stay the same and the other half predict that prices will drop. For a better idea of what your market is doing, be sure to reach out to a local real estate agent.
Buyers draw on various sources of income for down payments
There are a lot of ways people are coming up with the money for a down payment on a house. The most common method, according to 46% of agents, is simply by saving it. On the other hand, 45% of agents say buyers will ask wealthy family members for help, while 37% say their buyers will use capital gains if they did well in the stock market.
The 2022 housing market is still a mystery
It would be incredible if there was a way to see into the future. We would be able to make financial decisions that would work in our favor. We could time things just right so that we could sell our houses for top dollar, while simultaneously getting the best deal on a new home. Although the future is a mystery, real estate insights like these can help us figure out if it’s the best time to make a move to either buy or sell property.
With that said, these are just predictions and your local market may be completely different. That’s why it never hurts to reach out to a real estate agent as soon as you’re thinking about entering the market.