What can be expected in the coming years in the real estate industry? The answer is no one knows!
However, here are some trends set to impact the real estate industry.
One of the underlying drivers for these trends is a relocation from big cities to suburbs. This trend was developing before 2020 but was accelerated by the pandemic.
Here are some of the trends to keep an eye on over the next months.
We will be seeing people continue to leave the big cities and popularity continues to rise in the Sun Belt States. The Sun Belt states stretch from California to North Carolina and encompasses 18 southern states in between. Approximately 75% of the country’s population growth in the past ten years concentrated in the Sun Belt states. Years ago, the Sun Belt states mainly attracted the retired set, but today it is becoming increasingly attractive to all age groups. Lower taxes and a climate that is more desirable.
Mortgage rates will play an integral part in home sales. For many buyers, higher mortgage rates mean they can no longer afford homes in specific price ranges.Moreover, as interest rates rise, fewer real estate transactions in lower price homes will take place since lending standards will be tighter.
House hunting goes digital. The pandemic brought about a whole new concept in buying a home.
With Covid and the competitive housing market some buyers purchased their homes without stepping into the home. Sitting in the comfort of their own home they watched a virtual tour.
The pandemic-related demand for houses is compounded by another coinciding trend — Millennials entering the home ownership phase of their lives.
Millennials looking to purchase their first house or start a family are also spurring suburban growth.
As a result, single-family housing inventory is the lowest in approximately 40 years.
“If you’re waiting for prices to suddenly plummet to what they were in the past, you’re making a mistake,” says Tabitha Mazzara, director of operations at Mortgage Bank of California. “The Fed has promised another interest rate boost. If you’re ready to buy, don’t wait because prices aren’t headed dramatically downwards to what our parents paid. Things might dip a bit, but there’s no cliff dive that’s going to happen.”
We are seeing a lot of different trends in Real Estate and a lot of uncertainty in the Real Estate Market, but no one really has the answer.
I have stated in many of my articles in the past, Lake Oconee is a unique area, and the real estate market is better than ever. If you are a buyer don’t wait. If you are a seller there is no better time than now to put your home on the market.
STATS FROM LAKE COUNTRY MLS:
Jan 1, 2022-June 21, 2022:
Average List Price Sold: $737,318.
Days On the Market: 85
Thought for the Day: Be healthy and take good care of yourself but be happy with the beautiful things that make you, you. (Beyonce)
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