Goodbye 2021! We are gearing up for the new year. Are you? We have some predictions about the real estate market in the New Year.
The principal driver for the real estate market for almost two years has been lack of inventory—hence the sharp increase in home prices. We think demand will continue to be strong, but people are figuring out that Covid 19 is going to be part of life for the near future and beyond.
Some homeowners have delayed selling—fearing that selling could be easy, but finding a replacement home might be really hard. A recent survey conducted by HarrisX for realtor.com suggests that many of these homeowners are planning to list their home in 2022, with 65% of them planning to do so this winter and spring.
“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception,” says George Ratiu, manager of economic research for realtor.com. He continues, “Buyers should be ready for high asking prices and offer deadlines as seller expectations of the upcoming market are greater than in the spring, but an increase in new sellers could mean some relief from the inventory crunch.”
Here are some of the results of the HarrisX Survey:
- Among homeowners who plan to enter the market in the new year, 65% will do so within six months.
- Compared to the spring (76%), more prospective sellers (93%) have already taken steps toward listing their home.
- More than one-third of prospective sellers (36% each) have researched the value of their home and others in their neighborhood and have started preparing for the sale.
- Top reason for selling: More time at home during Covid 19.
- Family considerations are a top reason behind homeowner decisions to enter the market: 37% of prospective sellers say their home no longer meets their family’s needs and 32% want to move closer to friends and family.
- The rise in remote work is also a key driver: 23% of sellers want a home office and 19% don’t need to live near work.
What are your thoughts? Are you thinking 2022 might be the perfect time to sell? Let’s talk! Are you thinking you might want to buy? Let’s talk! We are always here to provide the best real estate services in the area and promise to Make Real Estate your BEST Investment.