2021’s Trends at a Glance
Since COVID-19 first hit the US in 2020, the housing market has been rife with change. We saw the greatest price increases for existing homes in years as well as more active transactions than ever before. And it’s not just hearsay; As of November 2021, Will County’s average home price rose 11.1% year over year according to Redfin. Inventory remains scarce with a 6.5% drop in homes sold and only 14 days on the market on average during the same time frame. What does this mean for next year? Let’s take a look ahead to 2022!
Price Growth
Looking at the past two years shows us the market is healthy and ripe for growth. Not only have prices grown steadily, but inventory has remained low. Can this continue? Many analysts have suggested that inventory will begin to rise slowly as we look ahead to 2022. A higher inventory could mean prices flatten out or even come down a bit. This is great news for buyers. After all, more homes on the market means more choices for buyers, right? While buyers may rejoice, sellers may view the potential trend with caution. Though pricing may flatten out, the possibility of more buyers may make it easier to sell in more difficult regions. The seller does not get the highest return, but they get a more guaranteed return.
Remote Work
Thanks to the continued establishment of remote work as a new normal for many workers and companies embracing this for the workforce at large, homebuyers are re-thinking what they value in a home. For example, proximity to the office was once ranked in the top three priorities for prospective buyers. That concept has plummeted in the past year; now, it has shifted down and out of the top 5 ‘must-haves’. What this means is two-fold: properties in what were once considered rural areas have now become more appealing, and people are now turning their home spaces into ‘green’ offices; that is, home offices with gardens, decorative plants, and miscellaneous foliage. As 2022 comes into view, this trend will only grow in prevalence.
A Balanced Market
One of the main reasons driving price growth over the past two years aside from lower inventory is the rise of the millennial homebuyer. In the last year, millennial homebuyers have made up a large plurality of real estate transactions. Many of these are first-time buyers who have never owned a home before. 2022 should see a return to a more balanced market, as there are more likely going to be less first-time buyers of the millennial generation and the potential for a return to ‘normal’ re-invigorating available inventory.
Summary – Look Ahead to 2022
2022 will be a new year; of this, we can be sure. But what about the prospects for both buyers and sellers in the market? Time will tell, but current trends can give us some insight. Whether it is the need for prices to stabilize, remote work changing how we view homes, and millennial contributions to the homeowning story, we can see things begin to shift as we enter the new year. I am excited to see just how much the market changes over the next year; I hope you are too! Get started with a look at my latest listing in Joliet and take the journey with me as we look ahead to 2022!