Spring is the busiest time of the year for real estate, usually! In the first few months of the year, everyone is wanting to get the ball rolling on their real estate goals. Families with kids want to be settled in a new home before the start of the next school year, which means starting the house hunt early. For a realtor, it is always exciting to feel the momentum pick up as the spring months inch closer!
As we anticipate the coming months in the real estate market, here are the 4 biggest trends we are seeing this year:
- Increasing prices. It seems that price increases are becoming the status quo in most markets, and the housing market is no exception! Although the price spike seems to be less steep than it was in 2021, we are still seeing prices climb slowly but steadily. This applies not only to houses in the market, but also to the cost of rent for apartments. These increases are due to several factors, with lower inventory at the top of the list.
- Slim market. In our community, there are very few houses being sold at the moment. Lower inventory is continuing to drive housing prices upward. For example, at the end of February 2021 there were 1155 active listings. At the end of February 2022, there were 534 active listings. That’s -53.8% less inventory than 2021! Because of this, we are still in a “seller’s market” for the time being. If you have been playing with the idea of selling your home in the future, now may be a great time to list your home and take advantage of the higher housing prices we are currently seeing! This is a once in a lifetime opportunity for a seller to sell their home! Give me a call today – I would love to help you “unlock new doors”!
- Growth in secondary markets. In the past several years, there has been a growing shift in population growth from primary markets to secondary markets. A driving factor in this shift is the fact that many companies which provide high-paying jobs are transitioning to a permanent work from home approach. As employees migrate to more quiet, suburban areas, these secondary markets are met with a need for more housing than ever before – we are seeing this in our own community. Because of this, we will likely see old homes and vacant apartment complexes renovated or rebuilt to accommodate the influx.
- Mortgage rates are trending upward. After seeing mortgage rates last year that were at a 30-year low, we are starting to see a slight upward trend. Mortgage rates this year are still considered low overall, but even a small change in the mortgage rate can tack on quite a bit of interest for homebuyers when taking out a loan. So far, these growing mortgage rates have not put much of a damper on the market, though, and in the past the housing market has remained incredibly resilient with even higher mortgage rates.
These past two years have been a wild ride in our real estate market, as we have flexed with the ever-changing circumstances of the world. It has been a joy for me to walk with each of my clients though on the wild ride. If you have any questions about what these 2022 housing trends mean for you, please don’t hesitate to reach out and start a conversation! It is my pleasure to answer any questions you may have about every step of unlocking new doors.