Overall, it is expected that Americans will have a better chance of finding a home to buy in 2022 than during 2021. With this said, the market will still remain ultra-competitive as first-time home buyer demand continues to increase. Although incomes are predicted to increase in the coming year, so will home prices, rents, and mortgage rates. Realtor.com® forecasts 2022 home sales (+6.6% year-over-year) will hit their highest level in 16 years as buyers remain active and for-sale inventory begins to recover from recent steep declines.
What to expect in 2022
Although the new year will present similar challenges in the real estate market, here are few things to expect in 2022.
- Millennial home buyers will fuel competition for limited inventory for several years: Recent survey data shows millennials account for over half (53%) of prospective buyers who plan to purchase their first home within the next year. This demographic has been and will continue being a dominant force in the housing market.
- Housing affordability will continue to present challenges: In addition to projected home price growth, it is quite likely that mortgage rates will continue creeping higher as well. This will present certain affordability challenges.
- Workplace flexibility will continue to impact the market: The rise in remote working environments has removed many geographical borders. With this said, we expect employers to continue implementing remote working environments and thus leading to even more demand for South Florida housing.
- Demand for more space will continue: As we have seen throughout the pandemic, home buyers are looking for more living and outdoor space. With Americans spending more time at home, these features will continue to be highly sought-after in the coming years.
All in all, the outlook for the South Florida real estate market continues to be positive. Increased demand will continue to put pressure on a slowly increasing inventory of homes for sale. Inflationary pressures and a rise in mortgage interest rates will certainly play a factor as well. Are you looking to buy or sell a property in South Florida? We can help.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!