While experts try to stay ahead of the curve by predicting real estate trends, nothing is ever certain. Let’s take a look at how real estate trends in the second quarter of 2022 are holding up against predictions.
Where Are We Today?
- As the country began coming out of lockdown, housing demands hit new highs that remain largely unchanged. According to the National Association of Realtors®, homes for sale spend an average of 18 days on the market.
- When it comes to inventory of existing homes, a six-month supply is considered par. Current inventory is less than one-third of that total, which causes homeowners to keep their houses off the market out of fear they won’t find another one. The result is a cycle that continues to keep inventory levels low.
- As we know from Econ 101, price is a function of supply and demand. Low supply and high demand have caused home prices to increase by almost 20 percent in the last year.
Predictions vs. Reality
Thanks to the unprecedented pandemic, real estate professionals have essentially thrown out the rule book. It’s hard to apply conventional wisdom when there’s nothing conventional about the events of the last couple of years.
- Widespread difficulties across the supply chain drove inflation up. But as supply chain problems have begun to ease up, inflation has remained high, indicating more deep-seated issues.
- An extended period of attractive mortgage rates, which hit an all-time low in January 2021, led to a frenzy of refinancing as well as purchasing. But with the Fed likely to address inflation by raising rates, it’s almost certain that mortgage rates will follow suit.
What’s Next in Real Estate Trends?
Knowing what is happening in today’s real estate market is critical to both home buyers and sellers. Market trends can let homeowners know if they are headed into a slowdown, and help an agent set reasonable expectations. To that end, Properties Online, Inc. has launched a new module for their website builder, RealEstateSites.com, that will enable agents to build market trend reports for their local area.
Build your brand by keeping clients up-to-date with the latest real estate news. Contact Properties Online for information about our collection of digital marketing tools.