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Residential real estate trends to watch in 2022
With just a few short weeks left in 2021, it’s time to look ahead into the New Year and the residential real estate trends to watch in 2022. And for those that are looking to buy or sell a home in 2022, market forecasters have already made plenty of claims about what to expect in the coming year.
It’s no secret based on the past year that Phoenix is a hot housing market. Residents saw their home prices increase dramatically. In 2021, Phoenix’s median home price rose to $450,000, an increase of about $100,000 in just a matter of a year.
In fact, Realtor.com just recently put out its Top Housing Markets of 2022 report on which Metro Phoenix is listed at No. 19 of the cities that will lead the nation in 2022 when it comes to listing price appreciation and home sales growth. The report also forecasted that Phoenix will see a home sales change of 14.3 percent, 7.5 percent home price increase, and a combined sales and price change of +6.8 percent in 2022.
Some of the key trends that are driving growth in these destinations include a strong local economy, job expansion in the tech sector and affordability, relatively speaking. Homeowners looking to relocate are seeking tech jobs but without the crowds of traditionally “techy” cities. The top markets in 2022 will also attract remote workers who are seeking other opportunities since the onset of the pandemic forced the rise in workplace flexibility that seems to have remained somewhat intact. There is also a trend for employees leaving big-city life behind in favor of remote opportunities that offer comparable earning potential with an added dose of workforce flexibility.
Demographics on either end of the spectrum are also driving 2022 real estate trends. Millennials and seniors aged 65 and older seeking retirement destinations will impact the housing demand in the New Year on a national scope, according to Realtor.com. Across the country, affordable housing is projected to rise yet again and at more than 14.1 percent over 2020.
The Phoenix market has continued to be extremely hot, and home price increases are expected to continue in 2022 as the influx of people moving to the valley creates high demand for the limited supply of homes on the market. Add to that the shortage of new builds due to pandemic-related lumber shortages and there’s a recipe for a continued hot market and one of the most important real estate trends to watch!
Into 2022, it will remain important for serious homebuyers to be ready to act quickly and be prepared with a pre-qualification and pre-approval for a mortgage loan. These things can ensure that once someone finds their dream home, their Realtor can present a realistic offer.
While this is a great time to be a seller, buyers should not be discouraged. Interest rates are currently rather low, which means a buyer can afford “more” house than if and when rates are higher. There are homes out there in every price range, but buyers should be realistic when they are creating their wish lists for their dream homes.
It’s important to list out the deal-breakers and the “negotiables” when shopping for the perfect house. Some things can be upgraded or changed, but some things can’t. Homebuyers should know what they want but be open to some modification. And of course, they should work with an experienced and professional Realtor that has their best interest in mind and will work hard to help every client find their dream home.
Justin Thorstad is a Realtor, designated broker and owner of Libertas Real Estate, which serves the greater Metro area including Phoenix, Glendale, Goodyear, and Surprise. He has been in the real estate industry in the Valley since 2003. He founded Libertas Real Estate with the intent to help his agents provide the best service and added value for their clients while also teaching Realtors how to become