After living through a global pandemic, many people reevaluated their priorities and that could mean moving, whether it’s for more space, to change jobs, or to be close to family. Homeowners are packing up and starting over in cities and towns across the US and in some cases even buying and selling a home at the same time to keep up with the real estate competition.
It’s a housing market where 83 percent of agents said that inventory is lower than expected in spring 2022. Combine that with a new era of remote employment opportunities and a general shift to online everything — from work to school — and that means that suburbs, areas with warmer climates, and second-tier cities are hot. If you are among the growing population of people who are thinking about moving in 2022, there are some factors to consider and trends to be aware of, for that fresh start.
Expect buyer competition
One of the real estate trends that began during the pandemic and is still influencing the real estate market is what’s called a seller’s market. This is a situation where there are not enough houses on the market to keep up with buyer demand and the result is buyer competition. Sellers in turn are able to get more for their homes than the asking price. While some areas of the country are more affected by this trend than others, chances are that you may need to get ready to pay more for your dream home. If you have flexibility about where you can move to (such as if you are a remote worker), then you’ll want to consult with a real estate agent about seller’s market trends to have a clear picture of what to expect.
Consider suburbs vs. cities
During the height of the pandemic, there was an exodus from cities to suburbs with remote working the norm. With people returning to offices or hybrid work schedules, cities are seeing a shift in housing demand again, but suburbs are still seeing increased demand. Second-tier cities are also becoming more desirable with headquarters moving to lesser-known cities to cut down costs, or flexible work locations making those big city offices less important. You might want to give those second-tier cities— Atlanta, Austin, Denver, and Charlotte, for example— another thought.
The new normal of remote work is here to stay and it’s causing real estate shifts. For example, real estate markets that were previously considered to be second home or vacation home markets, saw more interest as primary homes during the pandemic. Remote work is a compelling reason for people to consider moving to a city that they usually just vacation in, or to move their home closer to the great outdoors.
If you can work from anywhere, you might want to move to lower your expenses. This is part of the reason why second-tier cities are seeing increased interest in 2022 and as we head into 2023. Taking a look at housing trends in a range of cities can help you determine the best location to mix affordability with your must-haves for your next home.
While buyers may need to face increased competition in 2022, it can still be the right time to invest in real estate. A professional agent is your best guide to help you find your ideal market and home.