Keeping up with the latest real estate trends is an important part of determining how to best meet the needs of sellers and buyers. What trends are expected in Q4 2022?
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Technology has played a huge role in the real estate industry during the last few years. This trend is expected to continue as more agents turn to virtual staging, 3D tours and other digital solutions to help home buyers and sellers. These solutions make it more convenient for buyers to locate homes in other cities, states, or even countries that they may be interested in purchasing. Digital solutions can also streamline the buying and selling process, making it less stressful for sellers and buyers.
housing inventory
The short supply of housing available in the market contributed to stiff competition among buyers in the real estate industry last year. Housing inventory is still low overall, which is partly due to existing homeowners refinancing and locking in at low interest rates rather than selling. The low number of new constructions is another factor contributing to the low housing inventory. Ongoing supply chain issues are making construction of new construction more difficult, resulting in fewer properties for buyers to choose from.
lowering house prices
Home prices have started to fall after last year’s home buying frenzy. Despite rising interest rates, there are still many buyers looking to buy homes in today’s market. In some cases, buyers are eager to buy a home rather than deal with rising rents.
According to the California Association of Realtors, rising mortgage rates are reducing buyer demand, reducing consumer spending power. Unfortunately, with the new inflation reading coming in at a higher level, the Fed will most likely raise interest rates again at its next meeting.
Forecast
The % of consumers who believe home prices will increase is in the low single digits, as of June 2022. CAR members have indicated that a lack of demand in combination with a lack of listings keeps inventory tight. According to the most recent monthly REALTOR® survey, the percentage of agents who have sellers who are hesitant to list their home has been on an upward trend since May, hitting its second highest in October this year at 36%. level has been reached.
REALTORS® polled last month are expecting less, and buyers and sellers are still adjusting to the new market environment. Since April 2022, the percentage of REALTORS® who believe sales will increase in the near future has been steadily declining, reaching only 4.6% in October. It would be interesting to find out where in California these 4.6% of REALTORS live.
One positive note is that the market has become less competitive, with more sellers willing to negotiate and offer buyer incentives. Despite forecasts of a slight recession for 2023, the long-term prospects of continued price increases in California should continue to attract buyers who still qualified for higher rates but were sidelined during the craze of the past two years.
For more advice on how to use real estate trends to help your clients, please contact Properties Online. We provide real estate agents with effective tools to help them promote their business.
