As we head into 2022, there are four real estate trends that you can expect to see this year:
1. More homes will be available, especially on the luxury side. If you were watching my videos in 2022, you know that inventory bottomed out, reaching its lowest levels in recorded history. This made for a market where sellers were in control. This year, we expect a stark contrast; inventory is expected to slowly grow throughout the year, particularly in the luxury market, so sellers will now be forced to price appropriately at the outset.
2. Affording a home will remain difficult. The winds of change in real estate look like they’ll be favoring buyers this year. Nevertheless, breaking into the market still poses a challenge with mortgage rates increasing and income growth leveling off. Working with an experienced agent and lender will be your recipe for success.
3. Millennials will continue to populate the buyer pool. Just a few years ago, millennials were the “new kids on the block,” trickling into the market. Most couldn’t afford to buy yet. Today they account for 45% of homes sold, which establishes them as the generational group buying more mortgages than any other.
4. The new tax law still brings uncertainty. With the introduction of the revised tax bill in 2019, questions about how it would affect homeowners were swirling. Unfortunately, we still don’t really know, and it’ll stay that way until owners start filing for their taxes in April. This is all the more reason to hire a savvy accountant so you can potentially receive a bigger return this tax season.
“Breaking into the market still poses a challenge with mortgage rates increasing and income growth leveling off.”
For a personal consultation on the changes in store for our market in 2020 or help with any of your real estate needs, please call me at 858-864-8741. I’d love to assist you in any way I can!