Real Estate Trends That Work in 2022

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With all the changes in society over the last two years, 2022 is proving to be a defining year for real estate around the country, with many opportunities for both buyers and sellers. Although mortgage rates and housing prices are increasing, real estate is still one of the most solid investments you could make, with returns that steadily outperform stocks and other investments.

If you’re looking to move to one of the more desirable, higher-cost living areas in the country like Los Angeles County, Santa Monica real estate trends indicate that home values are steadily increasing, meaning that the market gets harder to get into every year.

However, other areas around the country are experiencing different trends, and in states with lower living costs, it’s much more of a buyer’s market. This article will cover some of the basic trends you can expect to see in 2022.

Trends to Expect

Real Estate Trends That Work in 2022

Increased Mortgage Rates

In 2022, the country has experienced unprecedented inflation in recent decades, which has translated into increasing mortgage rates for homebuyers. Most experts predict a final interest rate on mortgages of near 5% by the end of 2022, an increase of about 1-2% from 2020. While this may not seem like much, it adds up to a substantial amount of money over time.

Interest rates across the country have been low for several decades, so these new rates may remain where they are or increase even more. For the average buyer, it would be smart to get into the housing market now and try to get a mortgage rate while they are still low enough to be manageable.

Less Competition for Houses

Over the last several years, houses were often caught up in intense bidding wars with multiple offers on the house, but affordability issues caused by inflation and the increased mortgage rates are predicted to slow demand slightly over the next year or two. For buyers with the right financial situation, this is good news – meaning that they will be able to exercise somewhat more leverage over their offers on potential houses.

Slowing Home Value Appreciation

While many experts predicted that the Covid pandemic would slow home value appreciation, the last several years have seen many houses rising in value at unprecedented levels, above 16% on average in 2021 alone.

While prices may not go down as much, the speed at which prices are rising will likely slow significantly. This will end up producing a more stable market that will benefit home buyers, as they will be able to predict costs and budget long-term more affordably.

The Housing Market Works for You

The real estate market is a unique investment opportunity, one that provides a means to not only make money but improve your quality of life and raise your family somewhere you feel safe and have more exciting opportunities. Overall trends indicate that the market will continue to rise in value, demonstrating that real estate is always a good investment.

While it is certainly a significant financial decision that takes a substantial initial investment, putting money into real estate remains one of the smartest and most lucrative investments anyone could make in this economy.

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by Shelly Rhoades
Having recognized the need for accessible and affordable solutions in the remodeling industry, Shelly founded Affordable Kitchen and Baths with the mission of helping homeowners create their dream spaces without breaking the bank. Her dedication to providing reliable advice and quality resources has garnered her a loyal following and established her as a go-to resource for anyone looking to transform their kitchen or bathroom.

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