Being top luxury real estate agents in Las Vegas, we have been asked how we see the market developing in 2022. As the year is drawing to a close, the real estate market is heading into 2022 and bringing with it record prices. The luxury real estate in Las Vegas is no exception.
Zillow has recently come up with its list of predictions about how the housing market would develop in 2022 after a record-setting year in 2021 that does not show any signs of slowing.
In general, Zillow economists forecast the market in 2022 to be remarkably strong considering price growth and sales volume but short of 2021 performance.
An 11% home growth value for 2022 has been predicted by their experts. This is much less than the estimated 19.5% annualized growth rate seen in 2021. It is also expected that a total of 6.35 million existing homes will be sold on the market next year, which would be the highest number of homes sold since the Great Recession. 6.12 million homes are likely to be sold by this year’s end.
An 11% home growth value for 2022 has been predicted by their experts.
Limited inventory will continue to prompt bidding wars that will see sellers hold all the cards. Aside from inventory, other contributing factors that will keep prices up are years of under-building by developers, low mortgage rates, and elevated demand due to remote work.
The online real estate marketplace company also expects rental companies to become more popular as many will be pushed out of the housing market because of the rising home prices.
According to Zillow, after a slowdown in the early months of the pandemic, rent prices especially in what used to be some of the most affordable markets came roaring back.
Rising costs will make it harder for people to save for a down payment and demand for larger rentals can be expected to increase, including those for single-family homes. Families tend to stay in the rental market longer.
Zillow further reported that Americans take advantage of remote work flexibility to be able to move to larger homes in more affordable markets but many won’t want to commit full-time to a new location. This according to Zillow is often the case with younger people who are lured by the amenities of city living where expensive housing is more likely to put owning a home out of reach. More people may be interested in buying a traditional second home, which could be either an investment property or a part-time vacation home, before buying a home as a primary residence.
Americans take advantage of remote work flexibility to be able to move to larger homes in more affordable markets
Today, young people are keen on watching the housing market spending time in ‘Zillow surfing’, among other activities. A way to break into the market is by purchasing a second home more affordable than the one they live in. They can start building equity while mortgage rates are low possible also team up with family or friends to lighten the financial burden. Buying a home in a far-flung location is easier with virtual home shopping tools available today such as Zillow 3D Home tours.
With the present supply chain problems, the home renovation growth also shows no signs of slowing in 2022. In a recent survey cited by Zillow, three-quarters of surveyed homeowners were planning on at least one home improvement next year. Topping the list of renovation projects are bathroom renovation (52%) or kitchen renovation (46%), home office space addition or improvement (31%), attic or basement finishing (23%0, room addition (23%), or dwelling unit addition (21%).
Contact us for your property management Las Vegas needs in 2022 and beyond.