The housing market across the United States has always seen its highs and lows, and 2022 could be no different from the past. Yet there are some significant trends impacting the real estate industry in 2022 that people should know about according to the Property Records of Nevada in Henderson. Here are five key trends that the Property Records of Nevada identified as being trends in this dynamic market.
Large Rise in Luxurious Homes and Apartments
All of the numbers are looking great for a construction boom to take place in 2022. In fact, the real estate market has seen numbers like this since 2007. For those that remember, 2008 was the start of the housing crisis. Why confidence? Another number that underpins this is the trends seen in the fourth quarter of 2021. Mortgage applications for new homes rose 27% during that month. Clark County is seeing a drastic change in older properties being torn down to make way for luxurious apartments all over the county.
Property Prices Are Going Up
One piece of good news for new home buyers: According to the Property Records of Nevada the rise in home values is expected to remain in the single digits for some time as opposed to the blockbuster rise before the housing crisis. The bad news?
Home prices are still expected to rise between 3% or more on average which means that those consumers who are holding out for a “better deal” might find themselves paying markedly more in the near future than they had imagined.
Other Cities Are Experiencing the Same Situation
Forbes quotes the Managing director and global head of index investment strategy at S&P Dow Jones as saying the following regarding home prices. Like in previous years, places in the southern part of the United States and the “sunbelt” are experiencing the greatest rises in home prices with cities in Texas and Charlotte, North Carolina as areas of particular growth. Even so, optimism is often a seasonally adjusted market sentiment or as Marketwatch quotes investment strategist at Edward Jones Nela Richardson, “Housing people are the most optimistic people.
Huge Generation Shift
According to the Property Records of Nevada, the real estate market is also seeing a huge generational shift in the way that people own properties. The baby boomer generation, for example, is moving into more compact, easy-to-manage properties than their older and much larger houses.
This is having a major impact on everything but it also represents a real opportunity for buyers in some markets to get more of a house than they thought possible. How so? As boomers drive the boom in the “sunbelt” region, many are anxious to do so. This creates a situation where people have a market with eager sellers and still-need-some-convincing buyers. According to Baby Boomers, most Millenials are lazy due to everything being easily accessible.
Here Come the Millennials
Speaking of those buyers that still need to be convinced, it looks like the millennial generation is finally starting to hone in on the benefits of owning a home and more and more of that cohort are starting to look into how to buy a home. Historically aggressive rates and a lender market that is all-too-eager to approve solid borrowers buoy this. The shift in this area is also attitude-based. Surveys have shown that millennials are willing to cut back on spending in order to be able to save money for their own property.
Prices are going up and the entire United States is feeling it. Two factors have worked against the millennials in previous years and those are the rising prices of homes in general and, in particular, in the most desirable cities. It leads to a unique situation where people have stable jobs and income but no access to the real estate market due to the starting prices of properties being $300k and above.
While this trend isn’t abating too much, one trend that is pushing millennials to purchase a home for them is the fact that rents are also rising at a historical clip – and especially in the most desirable areas of the country. Nonetheless, increased inventory projections, as well as a boost in the willingness of the millennial generation to buy a home, means buyers will see more and more of this age group buying homes in 2022.
As Director of equity research at CFRA Research Ken Leon claims, Homebuilders are getting smart about how to delight millennials in order to reduce pain points.
Gentrification Continues in the Cities
The biggest single salient trend that we expect to continue emerging in 2022 and beyond is that gentrification will continue in the nation’s largest cities and their most desirable neighborhoods. While this could make purchasing a home increasingly difficult for middle-class families, it is expected that new construction could offset this in the fastest growing cities including Atlanta and in Texas.
Though gentrification is often touted as negative because of the way it can impact home prices, many cities are starting to manage this process in more productive ways and the benefits of gentrification have been readily apparent in cities like Philadelphia and Washington, DC, Forbes reports.
Coronavirus Causing Prize Hike
Property Records of Nevada predicts that the coronavirus will take a toll on the real estate market in early 2022 but will rise stronger than ever in late 2022. The market fluctuates from time to time due to different circumstances. Property Records of Nevada researches how the coronavirus (COVIC-19) affects real estate in a bad and good way as it unwraps. The issue that COVID-19 brought to the real estate market is that there was a sudden spike in demand for family homes.
Company Name: Property Records of Nevada
Contact Person: Customer Service
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Address:2657 Windmill Pkwy #257
State: NV 89074
Country: United States