Real Estate Experts Share Market Predictions for 2022

We’ve been seeing a booming seller’s market for almost two years, but there’s no guarantee that it’s going to stay that way for much longer. If you’ve waffled on when to make the leap and sell your house, you won’t want to miss this summary of HomeLight’s End of Year Report. 

In the report, we’ll give you a brief rundown of what top-rated real estate agents believe is likely to have an impact on 2022’s real estate market, so you can start making plans accordingly.

 

Contingencies are back in action

At the start of the buying craze, homebuyers would forego the typical contingencies that would normally give them a way out of the contract, no questions asked. These contingencies included things like securing financing, home inspection and/or appraisals, or needing to sell a house before going through with the deal. 

Well, these contingencies are making their way back into contracts – especially now that buyers are realizing how steep housing prices were getting. Buyers are taking great caution to include home inspection and appraisal contingencies because they want to make sure the house is actually worth what they’re paying for it! 

 

Bidding wars aren’t so common

Bidding wars were a lot more common over the past year and half then they are right now, according to 76% of respondents. These agents aren’t just seeing fewer bidding wars in general, they’re seeing properties receive fewer offers as a whole. Of the properties that do receive multiple offers, they’re only receiving a few offers instead of the dozens from the start of 2021.

 

Housing inventory continues to replenish slowly

Housing inventory is still low, but that could be changing as the public health crisis is under better control. The real thing that worries realtors is the result of the foreclosure moratorium being eliminated. Yes, it was revoked back in July 2021, but we have yet to feel the full brunt of that action. Pre-foreclosures have begun, but agents are confident that the impending rush isn’t going to cause a 2008-like market crash. 

 

House prices are declining

Prices around the nation have been pretty high and 95% of realtors were in heaven! Well, only half of realtors are still singing that tune. Much to a potential-seller’s dismay, housing prices are on the decline.

 

New buyers enter the market with pandemic savings

A lot of people have changed their relationships with money and instead of going out all the time for whatever reason, people stayed home. In doing so, they’ve saved quite a bit of money! 46% of realtors say that they believe much of the money buyers are using for down payments and closing costs come from their new pandemic-related frugality.

 

Stock market and familial wealth help other buyers

Investing in the stock market can be pretty darn scary, especially during a time where things are so volatile! However, there were many brave folks out there cashing in and 37% of agents say their clients are using their stock market earnings to come up with the funds to purchase property. On the flip side, 45% of agents say they have clients who’s housing funds are coming from a wealthy family member or some kind of trust fund. 

 

 

Housing market 2022 predictions round up

Before listing your property on the market or start browsing the local listings, consult a local real estate professional. There are so many different things that play a role in what the market is like, it could vary greatly from one county to the next. Your realtor will be able to answer any questions you have and offer advice regarding what would be your best bet. Of all the decisions that you’ll have to make throughout the real estate process, the realtor you hire is the most important!