There are many real estate trends coming into fruition in 2022, and, surprisingly, many of them have been spawned by the pandemic that started over two years ago. A lot of them are also intertwined in typical cause-and-effect scenarios. Let’s take a look at some of these emerging trends in detail:
Super-low Mortgage Rates
Since mortgage rates dropped to a record low of 2.65% in 2021, there has been a significant increase in applications for mortgages. The trend has even reached a record high in the last few months as rates remain both low and steady
Flight to the Suburbs
Due to both necessity and choice, the suburbs are once again becoming an attractive option for upwardly-mobile professionals. The top reasons are the more affordable rent and housing prices, as well as lower taxes and far less crime.
Shortages of Single-family Homes
Because the suburbs are once again a popular destination, young couples are now coveting single-family homes for starter houses or settling in to raise families, but there aren’t enough to go around.
Rising Home Costs
With the increased demand for single-family houses, and a finite amount of them available, their prices have certainly skyrocketed. Unfortunately, it doesn’t look like they’ll be coming down anytime soon.
Moving to the Sunbelt
The Sunbelt is the warm, inviting part of the United States that stretches from California across the South to the East Coast. The area has been attracting several folks from all walks of life due to the much lower cost of living.
Digital Home Buying
During the pandemic, many in-person transactions were replaced with digital means, and real estate also hopped on the bandwagon. Using drone videos, 3D home tours, and virtual staging, many sellers sold their houses easily without in-person meetings. That’s because buyers could find realtors and apply for mortgages on the web, too. As such, complete closings have taken place online.
In conclusion, it will be interesting to see if these trends will be continuous or if they are only temporarily due to the pandemic. Either way, they will certainly influence the market for years to come.