With the decrease in available inventory and high competition for homes, 2021 was a clear seller’s market, but it also ushered in a new wave of new buyers. If you are a real estate agent in 2022, you should expect more or less of some of the same market movement.
With last year’s housing market in mind, here are 5 major buying and selling trends that agents should keep in mind when assisting clients in 2022.
1. More people want multigenerational homes
Consolidating and savings became a big trend for homeowners last year. In 2021, 11% of home buyers purchased a multigenerational home. The primary reasons for buying a home that multiple generations can live in are 1) taking care of aging parents, 2) college-aged students moving back home, and 3) wanting to save money.
2. Almost every buyer and seller is loyal to their agents
As an agent, this may be one of the greatest trends in the industry. In 2022, real estate agents are still perhaps the most significant factor in people’s home buying or selling process. In a study by the National Association of Realtors, nearly 90% of buyers used real estate agents last year, and all would recommend their agents to other homebuyers looking to start the same process.
On the seller’s side, the numbers are similar. According to research, 90% of sellers worked with a real estate agent when selling their homes. Although client referrals and repeat business were the most common ways that they found and collaborated with their real estate agent, 89% of sellers said that they would definitely or probably recommend their agent to others.
3. People are moving shorter distances
When it comes to buyers looking for a new home, especially in recent times, one of the most important factors is the proximity to family and friends. In fact, the median distance between the home that recent buyers moved from and the new home that they purchased was only about 15 miles.
For sellers, a primary reason for selling was the desire to move closer to friends and family (18%), which topped the desire to move because of neighborhood aspects (11%), or the proximity to work offices.
When assisting both buyers and sellers during their transition to and from homes, make their current or nearby neighborhoods a priority when looking for new homes in 2022.
4. For-sale-by-owner (FSBO) sellers are down
Although home prices were up last year, FSBOs were not. In 2021, only 7% of home sales were for sale by owner (FSBO). FSBO homes sold at a median of $260,000 last year, signiﬁcantly lower than the median of agent-assisted homes at $318,000. FSBO shares are at a record low since NAR began collecting this data in 1981.
5. First-time home buyers’ numbers are rising
2021 saw an increase of new homeowners stepping into the market. First-time home buyers accounted for 34% of all sales in 2021, which is up from 31% in 2020.
What does this mean for agents in 2022?
In summary of these five trends, both buyers and sellers want cost-efficient homes and within proximity to family, jobs, etc. There is also an uptick in new home buyers from the previous years. Although the seller’s market is likely here to stay in 2022, agents will continue to be the primary asset for both buyers and sellers in the year to come. More than ever, real estate agents are needed to leverage sales, seek out appropriate homes, and gain clients’ trust during this competitive market.