Low mortgage rates, a growing need for more space and an increased number of young professionals looking to buy their first home have been major contributors to a cut-throat real estate market over the last two years. What’s to come in 2022? Glance into my metaphorical crystal ball with me as I share my real estate predictions below! 

If you sell it, they will buy. 

The increased desire to purchase and delays in new construction contributed to the whirlwind market last year. Though 2022 has an opportunity to remain a steady seller’s market, the long-awaited completion of several new developments in West Florida will increase the inventory pool and create more options for buyers. As borders slowly reopen, foreign buyers will return to the area, and interest among out-of-state and local buyers will continue. Continued interest among varying demographics means it’s safe to project that the market will remain tight and competitive.

Seeking a new lifestyle

Remote and hybrid work styles brought on by the pandemic have given people the freedom to live and work from just about anywhere. That demand for a fresher space is not waning, especially since millennials and Generation Z buyers are starting to emerge from the sidelines, making the largest share of new homebuyers in the country. 

It’s all fair in love and bidding wars.

More buyers than available inventory indicates buyers will likely continue finding themselves in multiple offer situations. Cash buyers will lead the “war” of multiple offers due to the attractiveness of fewer contingencies on a contract. For those getting a mortgage, rates are predicted to increase slightly but will still average around 3.5 to 4% throughout the year. This is great news for many first-time homebuyers who weren’t able to compete in 2021, as they will have a better chance to bid for their dream home next year. 

Appreciate your property values.

Although it won’t be as aggressive as appreciation numbers from 2021, property values are likely to go up anywhere from 6 to 15% or more depending on location. Houses and condominiums priced under $1 million will remain in high demand and will likely be the first to be purchased within days of getting listed. However, luxury properties will remain in great demand due to a niche of wealthy buyers eyeing the region. Buyers should expect to pay closer to the asking price, as the housing inventory will continue to be outnumbered by interested buyers. It’s important to be strategic when making your first offer!

Are you ready to step out onto the housing market in 2022? You might just find the home of your dreams! If you live in Sarasota and are interested in buying a home or selling yours, hire a Realtor you can trust to help you through every step of the process. Give me a call at 941-225-1500 to learn more.