For the past two years, the country has seen a crazy seller’s market. Houses were flying off the market almost as soon as they were listed. Unfortunately, all good things come to an end (if you’re selling, that is) and there’s no way of knowing for certain how the market will be in 2022.
Although the future can change at a drop of a hat, HomeLight’s End of the Year Report for 2021 can give us a pretty good idea of what we can expect for the housing market in the upcoming year.
If you’re thinking about entering the real estate market next year, here’s what agents predict it could look like.
Contracts will include contingencies again
At the height of the pandemic, the market was highly competitive and buyers were pulling out all of the stops in an effort to have their offers accepted. One of the ways they’d make their offers more appealing to sellers is to forego the usual contingencies. Buyers were willing to buy a house without protections that would allow them to back out of the transaction if there were problems with the home inspection, the appraisal, or if they had difficulty securing financing.
Real estate agents in Houston, Texas and the rest of the country are seeing more buyers submitting offers with contingencies. Buyers are seeing how much they are paying for houses that may not be worth the money, so they want to make sure they’re not stuck in a rotten deal.
Bidding wars won’t be as common
Bidding wars have been a very common occurrence over the past year and half, but 76% of surveyed agents say the bidding wars are on the decline. In fact, many are saying that properties aren’t getting as many offers as they were just a few months ago.
Housing inventory will be slow to replenish
There’s still a housing shortage throughout the country, but real estate agents are seeing more people putting their homes up for sale now that the public health crisis is waning. With that being said, there are some agents who are concerned that there may be a huge surge of houses for sale as the full effects of the end of the foreclosure moratorium set in.
Housing prices will likely decrease
Across the nation, housing prices have skyrocketed which made almost all of the surveyed realtors jump for joy. But as inventory replenishes, only half of surveyed realtors expect prices to remain high. In fact, housing prices are actually declining and 50% of agents predict that it will continue well into 2022.
Buyers use numerous sources of money to buy property
The pandemic has caused many people to rethink their attitude toward money and instead of spending their cash on frivolous things, they saved it. 46% if real estate agents say that the money people were able to save during this time will be the largest source of money to use for a down payment. 45% of agents say buyers will ask wealthy family members for help and 37% say they’ll see clients using any stock gains for their down payment.
2022 housing market predictions aren’t set in stone
The decision to enter the housing market (either to buy or sell) isn’t one that you should make without doing your research. There’s so many factors that come into play that it’s difficult to say what the market is going to be like in the near future. Fortunately real estate agents are always paying close attention to market trends and they’re the best source to turn to for insight as to what’s going on in the local market.
So, if you’re thinking about venturing into the market, don’t hesitate to reach out to a trusted realtor in your area for advice.