In 2022, many real estate investors are pulling for the market to return to some form of normalcy, and as such, they’re keeping an eye out for investment trends as they develop. Being proactive helps business professionals prepare themselves for the near future, and if you’re one of many real estate investors in the US, you’re likely already examining the 2022 market.
To prepare for changes as early as possible, take a look at these eight real estate investment trends to watch for this spring.
#1- Steady Rents in Family Units
Single-family home prices are continuing to increase, which makes becoming a homeowner out of the question for many families. Because of this, the need for single-family and multifamily rental units is likely going to continue growing steadily.
#2- Higher Interest Rates
According to experts, the real estate market could see interest rates increase as early as March 2022. While this may not be a concern for cash investors, those who want to take out new mortgages should prepare for this outcome.
#3- Climate Awareness in Real Estate
The impact that the property sector has on climate change has been a topic of interest as of late. In a recent commercial real estate trend, more than 80% of survey respondents stated that they were considering environmentally-sound investment options.
#4- A Challenging Market for Buyers
Because inventory is still somewhat scarce, the spring real estate market will likely be challenging for buyers. Property prices continue to rise, so for investors who are thinking about selling a property or two, now might be an excellent time.
#5- Increased Spring Activity & Competition
Though there is not a bountiful supply of properties to sell, springtime is often a hectic time for buyers. Vigilant investors will likely be very active when spring real estate listings show up. As such, it’s fair to assume that buyers will face a significant increase in competition.
#6- Rising Home Prices
Practically everything is becoming more expensive in 2022, and current investment trends suggest that real estate is no exception. Property prices are likely going to continue rising, though we can expect the increase to occur more slowly than last year.
#7- Online Real Estate Services May Increase
It’s fair to predict that the use of digital real estate services will increase as people take part in spring real estate transactions. The increasing popularity of online services may be a convenient development for tech-savvy real estate investors.
#8- Commercial Real Estate
Both 2020 and 2021 showed an increasing amount of commercial vacancies. However, in 2022, commercial real estate will likely stabilize, even with hybrid work styles becoming more common among the US working class.
Despite the high competition between buyers, many believe that 2022 will be when the real estate market starts to stabilize following the pandemic. As an investor, it’s beneficial to stay tuned and remain informed about how the market is progressing this year.