5 Biggest Trends in Real Estate in 2022
It’s been an interesting year for real estate. What started out as a super hot market for sellers has cooled significantly as mortgage rates rose, reaching a high of 7.08% in late October, according to Freddie Mac’s Primary Market Mortgage Survey. Also affecting the markets was a shifting working world — some people moved to cities as major companies pushed for a return to office, while others moved closer to nature as they continued to work remotely.
Take a Look Back: 2022 Year in Review
Consider: Should You Still Buy a Home in Today’s Market?
Here’s a look at a few of the biggest real estate trends of the year, from what kind of housing was most appealing to where buyers wanted to live.
Sustainability
Green and sustainable features were top of mind for many developers and buyers this year. “Real estate developers and agencies have been paying close attention to the demand for sustainable solutions in their projects,” said Jon Sanborn, real estate investor and co-founder of SD House Guys.
“Sustainable building materials, energy-efficient appliances and lighting, improved ventilation systems and other green initiatives can help real estate owners cut costs while contributing to a healthier environment. As climate change continues to be a major concern, sustainability features are quickly becoming a must-have for any new property,” Sanborn said.
The Popularity of Coastal Cities
“The hottest real estate markets for 2022 have been coastal cities, such as Miami and Los Angeles, followed closely by Seattle, Boston and New York City,” Sanborn said. “These areas all offer strong job opportunities and access to amenities that have made them a great choice for property investors.”
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Access to the Great Outdoors
While coastal cities remained hot markets, many buyers also sought homes in places that offer access to nature.
“Popular destinations for 2022 homebuyers were remote work-friendly destinations like mountain towns and beach towns,” said Sam Sawyer, founder and CEO of Pinnacle Realty Advisors. “Access to nature in a social distancing world was a very popular theme. Many people rushed to buy properties in small towns, and quickly ran prices up [in places] like Boise, Idaho; Bozeman, Montana; and other small towns with great outdoor access.”
Turnkey Homes
Fixer-upper homes seem to be losing their appeal.
“Buyers want turnkey homes, and this is attributed to two major factors — interest rates and time,” said Cindy Scholz, partner and real estate agent at Compass Real Estate. “With many returning to the office and social calendars filling up, buyers have less time to dedicate to renovation projects. Construction loans are costly with the high rate environment, and many clients are shying away from asset-backed lending as these lines of credit are all adjustable rates.”
Hesitant Sellers
The hot real estate market has been cooling down, leading to hesitancy among prospective sellers.
“Sellers are hesitant to come to market given the sea of negative headlines daily,” Scholz said. “We are not in a buyers’ market, but we have shifted back towards normalcy from Q1. This shift from a sellers’ market is causing a momentary stillness in the market.”
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This article originally appeared on GOBankingRates.com: 5 Biggest Trends in Real Estate in 2022
