In the ever-changing real estate market, it is hard to predict the trend. Some new trends have impacted the 2022 real estate business due to the COViD-19 pandemic. Let’s observe and get into those trends;
Online house hunts increase
The pandemic has accelerated the search for houses digitally drastically. For lockdown purposes, many sellers and buyers have to conduct their purchases online. Attributes like 3D tours, drone videos, and virtual staging were the way to decide the quality of the property. Although the online search for houses has declined in recent times, a large number of buyers and sellers are comfortable looking for a house in digital settings. It’s easy, comfortable, and hassle-free for buyers to check the house preliminary or from a distance.
People moving from cities to suburbs- The pandemic has created a migration from major cities to suburbs. Because of lockdown, and changes in job setting; this is the most comfortable living condition for the majority of the people. Necessity and choice were the two big reasons for this shift. This trend impacted the real estate business. Many neighborhoods in the suburban area started to get the attention of professional young adults.
Home prices continue to rise- Basic understanding of housing is enough to make you understand that house prices are on the rise. The world economy is particularly responsible for this phenomenon. The last two years of worldwide lockdown had also affected the businesses. Increased demand for single-family homes and a lower supply rate have shot up demand for pretty much any type of real estate. It is estimated that this trend is expected to remain the same for the next couple of years.
Steep rise in home price
Before the pandemic, home prices were increasing at a slow pace as usual. The rate was 1% to be precise. But, as mortgages have plummeted due to the low spending, real estate prices are seeing a steep rise. This nullifies the benefit of low mortgage rates. The increased rate of house prices in 2019 was 3.6%. By the end of 2021, it was 10.5%.
Millennials are becoming homeowners
For the first time, millennials are now dominating the real estate market as buyers. The generation is now in a position where they can find a job and have an income that can support them to be the owner of their property. A study in 2022 shows that among all the buyers, millennials are holding 25% of the chart, making it the largest number. They are also the largest seller demographic with a 19% percentile.
More listings for luxury homes
The real estate home for high-end inventory has grown since the pandemic. The reason behind the high level of availability of lavish houses is many. Many of the owners are selling these houses due to their economic situation, and some of them are expecting high home prices. In 2020, luxury homes saw a 60.7% of YoY increase. In addition, the listing grew to 31%.