What can we expect from the upcoming 2022 real estate market year?

Now that 2021 draws to a close, many are looking ahead at 2022 and wondering what it has in store for real estate. Today I’ll discuss what we can expect on both the local and national scale. With the new Tesla, Samsung, and Apple headquarters expanding here (on top of the tech giants like Google that are already in the area), over 150 people a day move to the Austin area. Suffice it to say that we’re feeling the housing shortage here.

Nationally, Realtor.com economists say that we should expect another crazy market year in 2022. Mortgage rates will increase a little, which will make affordability a top consideration for first-time homebuyers. Droves of millennials are pouring into the market now that they’re at the prime buying age; they’re looking to secure their homes before rates get any higher, especially with home prices as high as they are. Builders are struggling to match the demand for homes, but they have ramped up production. That will give buyers more options to choose from.

“This is a great time for sellers to get top dollar for their homes.”

Along with rising home prices and interest rates, we also have rising rents. Many renters are seeing the financial benefits of owning a home versus renting and are jumping into the market. Due to post-COVID flexibility, many buyers will be able to broaden their searches, getting farther out into the suburbs because working from home means they no longer have to commute. I expect the suburban areas around Austin to expand further this coming year.

Ultimately, this is a great time for sellers to get top dollar for their homes and take advantage of our low interest rates. In our next post, we’ll explore ways to win as a buyer in a seller’s market using tips and tricks that we use to close deals. 

If you have any questions about the market or real estate in general, don’t hesitate to give us a call or send an email. We’d love to hear from you.