Now Pending: 643 Stilson Canyon Road Barroso Real Estate Team
Real Estate December 2021
The 2022 real estate market is expected to be anything but slow, even after a year of surging home prices and intense buyer competition (Inman). The strong seller’s market is expected to persist, and the newly introduced flexibility for virtual work provides a new perspective on what remote-working buyers are looking for (Zillow). As we prepare to take on the new year, we have selected some Parkway-approved real estate “hot takes” that we propose may be the most influential factors for the 2022 real estate market. Whatever the outcome may be, and however the market may look, we look forward to many successful transactions for our buyers, sellers, and investors over the upcoming new year!
More Inventory for Buyers
It’s not a secret that the tight market supply created competitive buying conditions in 2021. However, 2022 seems to promise some inventory growth over the coming months. This growth is expected to come from two sources: more new developments being constructed and more homeowners ready to list their homes in the new year. Homebuilders have been working hard to meet the strong buyers’ demand despite the challenging conditions of the supply chain and labor shortages. When it comes to the new year the market will most likely continue to favor sellers, however, there will be many more opportunities for buyers and their agents, to bring their A-game and tackle their next real estate transaction. Source: (HBI: Home Buying Institute)
Active Listing: 1826 Locust StreetJon Baird DRE#01936985
Anything but a Slow Market in 2022
While it is predicted that 2022 will fall just short of record-breaking—when compared to 2021—economists still predict strong price growth, along with increased sales volume. Zillow researchers predict an 11% home value growth in 2022, with home sales predicted to crush records set back in 2006. While sellers may keep the upper hand in 2022, there still seem to be many new opportunities in store for both buyers and investors next year. Source: (Zillow Hot Housing Takes)
Top housing markets drawing remote-minded workers
The top housing markets in 2022 are predicted to be located in affordable tech hubs with close access to outdoor recreational activities. These areas are drawing remote-minded workers, who desire the big city salary, but the quality of life that comes from a slower-paced environment. Remote-working has created a framework for a whole new lifestyle, with new needs for both buyers and sellers during their real estate endeavors. Source: (Inman)
@TheJensenGroup’s recent home renovation project!
No end in sight for the renovation boom
With prices and mortgage rates rising, many buyers chose to renovate their home, rather than trying to compete in the market to “buy-up.” The ultra-competitive housing market has caused many buyers to compromise. On the list of wants or to-dos, the top 6 renovation projects include: renovating a bathroom, renovating a kitchen, adding or improving a home office space, finishing a basement or attic, adding a room, or adding a detached bonus unit.Source: (Zillow Hot Housing Takes)
Mortgage rates trending upwards
The many real estate predictions for 2022 are pointing in the direction of higher mortgage rates. Such predictions have expected rates to surpass 4% by the end of 2022. While these rates have proven to be wrong in the past, it is a variable to consider and track during your next home buying process. Source: (HBI: Home Buying Institute)
Large rentals in high demand
With rising home values the rental market will definitely have some new factors and variables to consider in 2022. The pandemic caused a brief slow down at the beginning of 2021, however, rent prices are come back—bolder than ever—especially in what was previously affordable market areas. Rising costs propose new challenges in saving up for a down payment, making it likely that the demand for larger rental homes to increase.Source: (Zillow Hot Housing Takes)
Should the 2022 New Year bring you a change of address, our Parkway agents would love to help navigate you throughout your transaction. When it comes to real estate, our agents provide the care and commitment of local ownership and leadership and the market reach to buyers and sellers around the entire globe. Our agents bring a fresh and personalized approach to the process of buying and selling real estate so that your real estate experience is a joyful one that results in successful homeownership. From our Parkway family to yours, we wish you a wonderful holiday season and an even better New Year. -Parkway Real Estate Co.
Picture Credit: IG @Clavtron @homenthusiast
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As the leading independent real estate company in the Sierra North Valley MLS, we sell real estate in Butte County, Glenn County, Tehama County and Plumas County.
