For the last couple of years, the real estate market has been in a craze. It will come as no surprise to many that 2021 had the most home sales in the last 14 years; home sales in December 2021 were the second-highest month report history, following closely behind December 2020. But what does that mean for the future of homebuying?
Record-Breaking Sales
Even with low inventory, 2021 had record-breaking sales for home buying. Buyers have fought tooth and nail to secure their dream home, allowing sellers to profit wonderfully from the competitive market. Nick Bailey, President and Chief Executive Officer of RE/MAX, LLC, predicts that this trend will likely continue through 2022.
Bailey states, “The story of housing in 2021 was centered around high demand that led to a substantial increase in sales despite ultra-low supply. What’s promising for 2022 is that many of the factors which drove record sales in 2021 remain in place.” With favorable interest rates and incredible equity for many homeowners, the trends from 2021 could likely continue through 2022. Unfortunately, some of the less favorable patterns may also carry throughout the year.
Potential Challenges
Demand is expected to remain high in 2022. While this may be beneficial for sellers, buyers will still have to fight the competition for the right home. However, Bailey doesn’t see this as a major cause for concern. “Buyers shrugged off all sorts of potential obstacles – high prices, record-low inventory, stiff competition for available listings – and kept things rolling the entire year.”
Additionally, interest rates are expected to rise alongside growing home prices. Low inventory still places tension on the buyers’ budget, but the increasing costs are not forecasted to rise as high as previously seen. In the past, buyers had to meet the sellers’ every demand to have their offer accepted. In 2022, experts are noticing less urgency from buyers to secure a deal. Yet, homebuying trends have remained strong since the start of the new year.
The Silver Lining?
Could 2022 take the cake for the busiest homebuying year to date? With the trends we’ve seen over the last few years, this is a very real possibility. Now more than ever, agents have to achieve adaptability to roll with the punches in 2022. Improved time management, negotiation skills, and continuing education and training are necessary for a successful agent in 2022. Luckily, RE/MAX Metro offers countless tools to help real estate professionals realize their goals and reach consistent growth. RE/MAX agents can rest easy (and keep up the success) knowing that their brokerage has their backs!
Want to learn more about the RE/MAX Metro family and all of its incredible assets? Contact our team here!
Upcoming Local Events
The inaugural ShamROCK Festival starts March 12th, 2022 to celebrate St. Patricks Day! The festivities will take place at the St. Pete Pier from 1:00 PM to 9:00 PM. Attendees can enjoy live music, Irish dancers, magic shows, authentic food and drinks, and even a Leprechaun! Tickets start at $10 - don’t wait to secure your spot!
For more information about the event, visit the St Pete Pier's ShamROCK Festival Facebook page here!