Real estate trends are constantly changing, especially as new technology changes the way people do business. For example, in 2020, we saw a significant increase in the number of virtual showings thanks to the coronavirus pandemic, which forced people to have less physical contact with one another.
In 2022, there are several key trends that will continue to impact the real estate market, especially for investors. If you own property or if you’re looking to buy, you may want to take this list into consideration.
Off-market investments
There have always been off-market investments available to those who have the right contacts or know where to look. However, now, this is becoming a trend thanks to companies like New Western.
As a new, exclusive investment inventory provider, New Western provides investors with access to off-market residential properties, and they manage the purchase process.
While investors had to know someone in the past, now they only need to sign up for a service that will give them access to these off-market properties. For a fee, anyone can access what was once reserved for people with luck and big connections.
Higher mortgage rates
Now that mortgage rates have risen pretty high, home sales have slowed. Many people don’t want to – or can’t – get the loans required to own a home in the current market. As of August 29, 2022, a 30-year fixed interest rate is around 5.743%.
As of August, home sales have been declining for five months. However, experts say sales usually pick up when school starts again. Regardless, if you’re going to buy a home in 2022, rising mortgage rates are something you should be aware of because they will impact you long-term.
Urban suburbia
A growing number of people want to live in an urban environment while still hanging onto the conveniences of the suburbs, and there are some communities that make this happen. Buying property in these types of communities can be a very profitable decision.
The urban-style communities tend to have 24-hour nightlife where all the shops are located in one central downtown area with nearby houses or apartments. The idea is to make everything within walking distance, so nobody has to drive or use public transportation.
People are finding it too expensive to live in the big cities, even though job opportunities exist because they have to earn three times more money just to survive at a basic level. That’s exhausting. A one-bedroom apartment in Manhattan, for example, costs just over $4,000 per month.
As the big cities become more packed and rent prices skyrocket, you’ll find the younger generation moving to cities that make life a little bit easier.
Virtual technology
The COVID-19 pandemic may have kicked up virtual technology several notches, but it’s a trend that’s still gaining traction. Some real estate agents will only give live tours to potential buyers who have already gone through a virtual tour. Other agents have stopped hosting open houses and, instead, host virtual open houses on Zoom.
The 3D virtual tours are still gaining popularity even though there’s no reason people can’t meet in person. This is actually one trend that’s highly beneficial. With a 3D tour, potential buyers can get a really good idea of the houses they’re considering without having to go anywhere. They can see right away if the house meets their needs. Real estate agents also benefit because they don’t have to drive around to show properties as often, which saves them time and gas.
Sustainability
Sustainability is always a trend in the transportation industry, but it’s starting to become a trend in real estate, too. Homes being set up to use solar energy is a good companion to the push in the U.S. to make all new car sales zero-emissions.
Many home buyers intentionally look for homes that are equipped with solar panels, geothermal coils, radiant heated floors, and other alternative energy sources. Knowing they’ll save plenty of money on electricity bills in the long term, eco-friendly housing is in high demand, which makes it sought after by investors.
Some trends are here to stay
Although some real estate trends are passing through, others are here to stay. For instance, virtual showings and 3D tours are likely to remain a staple in every real estate agent’s strategy.
However, other trends will likely change or disappear entirely. It’s hard to say which trends will fade, but time will always tell
