Real estate trends for 2022

real estate-trends

En 2021, housing demand and prices have increased due to insufficient housing available on the market to meet demand. COVID-related supply chain issues and labor shortages ultimately influenced this trend. In 2022, buyers, sellers, renters and investors can expect a potential drop in purchase volume due to rising interest rates, but various factors could cause things to turn out differently. In this article, us We're going to detail these 2022 real estate trends and more.

 

Expect a slight return to seasonality

We can expect some return of seasonality in 2022 (more interest in spring and summer compared to the end of the year) due to a rise in interest rates.

Comparatively speaking, interest rates will always remain low, maintaining greater affordability for buyers and facilitating more transactions.

 

Extended search parameters

Le remote work and with workplace flexibility becoming the norm as employers seek to retain talent and cut costs, homebuyers are broadening their search and considering buying homes in less populated and more affordable areas. Suburbs and other markets that offer a lower price per square foot are expected to see a surge in popularity in 2022.

This trend will also lead to lower affordability in these areas.

 

Inventory will remain low

Inventories are expected to remain low in 2022, especially at entry and mid-range prices. This means that 2022 will not bring together the best conditions for first-time buyers.

If you're looking to sell your home in 2022, on the other hand, you'll benefit from rising prices and plenty of offers.

 

Stabilized rentals

In 2021, the rental market experienced a rebound. At the start of the pandemic, many tenants sought more space through home ownership. The normalization of remote work is also influencing people to buy homes outside of city centers.

Rental demand has mainly returned to major cities and suburban areas.

 

New construction could start to reduce demand

COVID has exacerbated this problem by adding even more material shortages and supply chain issues.

Despite these factors, builders remain confident due to strong demand. Supply chain issues will improve and a backlog of new build homes will finally hit the market.

This is not just the case with single-family homes. There is a significant amount of new multi-family housing construction also in the pipeline.

 

Strong luxury market

Companies and stocks have seen massive gains in 2021, inspiring buyers to invest more in luxury real estate. Since these buyers aren't impacted as much by rising interest rates, luxury property prices will most likely continue to rise in 2022.

 

Increase in iBuyers

The digitization of the real estate sector was already well advanced even before the pandemic. This trend is only going to continue, with virtual tours and iBuying becoming more commonplace. However, the advice that real estate agents can provide in such a complex market will remain relevant to buying and selling homes in the future.

Digital options for departures and home visits will adapt to meet demand from Gen Z and Millennial shoppers. Staying on top of evolving industry trends is a top priority for today's real estate professionals.

 

En conclusion

While we can make educated guesses about what the housing market might hold for us in 2022, the future remains unpredictable. No matter the playing field, there's always an opportunity for those who keep their eyes peeled.

If you need advice on buying or selling a house in the Landes or Basque Country, the O'Plus team will be happy to discuss your goals and help you better navigate the property market in 2022.