COVID-19 Pandemic Shapes 2022 Real Estate Trends

Real estate has been influenced by the COVID-19 pandemic like any other industry. The uncertain times created several significant trends in real estate, such as skyrocketing home prices and relatively low mortgage rates. But are these trends here to stay? What is awaiting the real estate market in 2022? In this article, we’ve rounded up six major trends in real estate to watch in 2022. 

  1. Property prices will grow slower than in 2021

Since the quarantine began, the number of homebuyers has been steadily growing, making the number of properties for sale drop. As a result, property prices aren’t expected to fall. But although the prices will remain high, they’ll rise at a considerably lower rate, around 2.9% versus an anticipated 12% rise in 2021.  

  1. There won’t be many property offerings

The coronavirus pandemic pulled off a lot of construction projects, causing workforce shortages and lack of materials, not to mention the global supply chain issues. That being the case, there will be fewer homes for sale in 2022 than in the pre-COVID years. In addition, the demand for homes is expected to grow since an enormous number of Millennials will achieve their prime home-buying age. So if you want to buy your dream home in the desired location, it’s a good idea to reach out to top realtors in San Antonio and secure a winning deal. 

 

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  1. Suburban areas will get even more popular with homebuyers

Due to the pandemic, more people became interested in purchasing properties in the suburbs. First, people started to view homes in the city outskirts as safer places to stay during the pandemic. Next, a suburban home provides more space for a lower price than one in the city center. Another critical factor contributing to the increasing popularity of suburban homes is remote work. The pandemic has successfully demonstrated that working from home is no less productive or efficient than staying in the office. Consequently, people are more likely to choose suburban homes as they now aren’t so much discouraged by tough commuting back and forth. Folks are moving farther outside of the cities, which can mean keeping prices for suburban homes high. https://www.fastexpert.com/  

  1. Mortgage rates are expected to keep going up

Low mortgage rates marked the start of the COVID-19 pandemic. This led to immediate jumps in property prices, as by paying less interest, homebuyers could spend more money on homes. But with the improvement in the economy and the rise of inflation, mortgage rates are sure to increase. As a result, buying a property with a mortgage will become more expensive. 

 

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  1. Renting fees won’t cease to skyrocket

In the second quarter of 2020, rents in big cities slumped, driving many tenants to move to nicer, more spacious apartments at discounted rents. However, in 2021, they were faced with increases in rent even in smaller cities and suburbs. And although rental prices have already exponentially grown over the last year, we have bad news for tenants: prices are assumed to increase by a whopping 7.1% in 2022. 

  1. Virtual reality tours are here to stay in 2022, and for good

Finally, the pandemic has dramatically changed the way homebuyers view the properties for sale. Due to the COVID-19 restrictions, realtors needed to find a new engaging way to showcase their offerings that could replace property visits. This led to the increased popularity of VR in real estate marketing. Virtual reality tours allow homebuyers to explore multiple properties from the comfort of their homes and shortlist them for actual visits. Without any doubt, the use of this technology will only grow in real estate in the years to come, as it proved to be super convenient as well as cost- and time efficient, both for realtors and buyers. 

 

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