The real estate market responded to numerous challenges from 2021 with resilience and creativity by relying on perseverance and banking on technology.
With the COVID-19 pandemic hopefully on its last legs in 2022, we expect the industry to stick to some familiar trends from last year and adopt some fresh ones.
An Online Marketplace That Empowers Buyers
Homebuyers didn’t always get the best real estate advice in 2021 despite looking for properties in a booming real estate market. Many in-demand real estate agents were either too busy rotating customers or simply uninterested in giving their clients unbiased information.
New agents also entered the market in record numbers to capitalize on fat commission rates from rising prices. A significant number of these new realtors did not have the expertise to help trusting homebuyers make one of the biggest decisions of their lives.
Until the launch of disruptive real estate marketplace Nobul, there was no way for people in the real estate industry to connect with verified real estate agents and learn about their commissions and stats.
Nobul empowered buyers by having top agents compete for their business. In 2022, more homebuyers will surely utilize the platform to partner with a reputable, knowledgeable, and trustworthy professional.
Continued Housing Growth
It’s well documented that the real estate market experienced extraordinary growth during the pandemic. Homeownership went up while prices increased due to a shortage of inventory.
Buyers who were expecting growth to reduce in 2022 may be in for a surprise according to Regan McGee, the CEO of Nobul.
“We know this growth will continue into 2022 but we should also be careful to watch a few key factors,” McGee shared with Techno FAQ. “The pandemic has shifted so many industries, including the lumber industry, which is experiencing sky-high prices right now. While this hasn’t impacted the ‘housing high’ yet, we know we need to watch the impact of this on the real estate industry in 2022.”
Rise of Secondary Markets
Although secondary housing markets are usually more attractively priced, homebuyers have resisted them because they’re further away from places of employment.
But as densely populated areas become unaffordable for the average homebuyer, midsized secondary housing markets far away from large population centers may become more popular in 2022.
The pandemic certainly changed things by forcing workplaces to adopt remote working practices. In 2022, many offices have made the shift permanent, opening up opportunities for employees to live further away.
For example, in Ontario, Canada, buyers who can work from home are already moving further away from the sprawling metropolis city Toronto to towns like Barrie for cheaper properties.
Baby Boomers to the Rescue
Urban Institute’s report suggests that some millennials are being shut out of the housing market. The cohort faces rising living costs, student loan debt, and escalating property prices. And with increasing interest rates and fewer job opportunities, home buying is a challenging endeavor.
By contrast, baby boomers in their late 50s and beyond, who have been accumulating wealth for decades, have significantly more purchasing power and better credit.
According to experts, boomers with millennial children will continue to help their kids navigate housing market challenges in 2022 by giving them money for a down payment or starter cost on a home.
In addition, they may help them qualify for better interest rates and loan terms by co-signing for a mortgage. Some parents may also add their millennial children to their credit cards to help enhance their credit scores.
Currencies that exist on the blockchain like bitcoin have long been disrupting the financial markets by giving users a decentralized option free from manipulating governments and big banks. In 2022, blockchain platforms associated with the real estate sector may also begin disrupting the housing segment.
Proponents of the digital architecture believe that blockchain will increase the security of real estate transactions, offering greater visibility, accessibility, and immutability of data.
Blockchain can also potentially minimize the roles of attorneys and banks, saving buyers and sellers money on fees and commissions. Moreover, real estate transactions should also be much faster with fewer intermediaries.
2022 is shaping up to be a fascinating year for the real estate industry. Technology, creativity, and adaptability will undoubtedly play a large part in the sector’s future.