Real Estate Trends in 2022: Understanding Their Implications on Your Property Investment Decisions

woman about to buy a property shaking hands with a real estate agent

There’s no denying impact of the COVID-19 on the real estate market. For one, the pandemic restrictions have disrupted the home-selling and home-buying journey. The crisis has also compromised mortgage payments and led to increased interest rates. Lastly, individuals and families have been looking for a crisis-proof house.

This year, you can expect some trends in the real estate market. First, take note of the scarce inventory of real estate properties with low supply yet recovered demand. Second, prepare for the increase in house prices and mortgage rates. Lastly, you’ll see home-buyers and property investors showing changing property aspirations and compromising their definition of a dream home.

Let’s take a look at the real estate trends in 2022. Read more to understand their implications on your property investment decisions, whether you’re a home-buyer, a home-seller, or a property investor.

1. The focus on health and wellness

The COVID-19 crisis has put the health and lives of people at risk. Aside from keeping their residential spaces free of the novel coronavirus, families promote health and wellness at home. Due to the pandemic restrictions, they have pursued home improvement projects with the overall well-being in mind. In addition, many individuals are looking to purchase residential properties leaned towards health and wellness. They plan to buy homes with a house gym, wellness retreat center, and home entertainment hub. Whether a home-buyer or home-seller, keep this health and wellness trend in mind.

2. The integration of indoor and outdoor spaces

The pandemic restrictions have forced individuals and families to stay indoors, especially at the onset of the crisis. As such, they have realized the value of their homes and sought to improve them. Others have thought about investing in crisis-proof properties. One real estate trend is the integration of indoor and outdoor spaces. Some houses have an outdoor kitchen, a deck and patio, a pergola, and a fire pit. When buying a house, consider this trend for outdoor relaxation. If you’re selling a property, incorporate this into your home.

3. An increase in house pricing and mortgage rate

Home pricing and mortgage rates continue to be a setback this year. Home-buyers will find it unaffordable to purchase their first homes. This problem is especially true for millennials and Gen Z, who account for most home-buyers. On the other hand, the Federal Reserve plans to increase the interest rates this year a few times. It means that the mortgage rates will most likely increase. Even old borrowers are thinking of having a mortgage refinancing application.

4. Scarcity in inventory

As mentioned above, the inventory in the real estate market will remain scarce. Property investors can expect a minimal supply, albeit a recovered demand among home-buyers. The culprit? The COVID-19 crisis has disrupted the supply chains and led to labor shortages. Fret not, however, as there are no signs of stopping for the real estate market. Hopefully, there will be an influx of real estate supplies in different localities across the globe anytime soon. But as a property investor, be highly critical in your investment decision for now.

5. The evolution of iBuyers

Did you know that the pandemic has led to the rise of iBuyers? This trend makes sense as home-buyers and home-sellers prefer to conduct real estate transactions online. Thanks to digital tools and technologies, they have made this online process possible. For the uninitiated, iBuyers are companies that buy homes directly from property owners. It means that home sellers don’t have to go through the real estate process, from property listings to property viewing to negotiating and closing the deal. The iBuyer companies then take these purchased properties, upgrade them, and put them out in the market for property sales.

6. A compromise for a dream home
couple looking at their dream home

When it comes to the real estate market, every home buyer aspires to achieve their dream home. Of course, this home vision varies from one family to another. However, attaining your dream house can be elusive this year, given the ongoing pandemic. Think of the increase in home prices and mortgage rates discussed above. The good news is that most home-buyers are willing to compromise in their purchase decisions. Still, the focus must be on the property’s aesthetics, functionality, comfort levels, and not to mention, health and safety.

At this point, you now know what to expect this 2022, as far as the real estate market is concerned. Be sure to consider the trends discussed above, from a focus on health and wellness to scarcity in inventory to a compromise for your dream home. Whether you’re a home-seller, home-buyer, or property investor, keep these trends in mind to make sound decisions in your property investments. When taking the plunge, work with a professional realtor and even legal expert to make a successful real estate transaction this year.

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