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Over the past few years, the real estate market has endured historic and unprecedented times. While inventory was at an all-time low, record low mortgage rates have encouraged home buyers and investors into enter the market. In 2022, interest rates are forecasted to increase but still remain favorable, competition for homes will level out as inventory levels, and home prices will continue to increase but at a more reasonable rate.

As we ramp up the new year, Coastal Equity Group is looking at 3 Homebuying Trends emerging in 2022. 

Trend 1 – Investors will Start to use More Technology Platforms

Whether your strategy is to buy and hold or fix and flip, speed will remain critical as competition for properties will remain persistent throughout the year. This will encourage investors to utilize various technology platforms to give them the edge they need to succeed.

For example, digital auction sites will allow investors to search properties in foreclosure, make offers and close digitally without visiting the courthouse. We’ll start to see more hybrid valuation products (BPO and Appraisals), digital title services and portfolio management tools powered by AI emerge into the market. These technology resources will help improve efficiency, encourage cost savings, and fuel success for investors.

Trend 2 – More Homebuyers will Enter the Market

As inventory continues to grow there will be fewer bidding wars, home prices will stabilize, and rates will remain relatively low – leading more home buyers to enter the market. We’re optimistic and think the housing market will shift into a buyer’s market. 

Between Spring of 2020 and throughout 2021, we saw historically price increases and record low inventory. According to Freddie Mae in 2020, house price growth was 11.3% and is expected to be 16.9% for 2021. Fortunately, Freddie Mae is forecasts price growth to slow to 7% in 2022. Encouraging a more comfortable home buying environment. 

Trend 3 – Homebuyers will Continue to Move to the Suburbs

The pandemic caused many individuals to think differently about their surroundings. Many of us now have the option to work remote on a full or part-time basis and no longer have daily commute. This has encouraged home buyers, millennials in particular, to migrate to the suburbs in search of family-friendly and higher school rating neighborhoods. With the adoption of flexible work environments and more people wanting to lay down their roots homebuyers will be choosing the suburbs over the city. 

It will be interesting to see in 2022 how home buyers will behave in the wake of this historic time of the housing market. If you are an investor looking to take advantage, connect with our team today to discuss your buying options.