The real estate market has been affected by the pandemic in so many ways in the past two years. Investors, buyers, and agents have had to adjust accordingly to stay afloat in an already highly competitive market. Going into 2022, many wonder if certain factors are going to contribute to further changes in the real estate market. While many hope for a return to normalcy, here are some possible changes to look out for heading into next year:
One of the most significant impacts on the market that is, and may still affect the existing market next year, is the low supply of properties. Nationwide, the housing supply has plummeted and is now the lowest it’s been since the 1970s. This is a result of uncertainty in the market.
The market combined with low supply and investors and buyers steadily increasing has led to a high demand for properties. While this is good news for sellers in the market, this is still not good for those who want to purchase properties. High demand could alter the market by more properties becoming available overtime to adjust and an unfortunate increase in prices.
Nationwide, prices for real estate properties have increased. According to a breakdown by the N.A.R., the median price in the South was 16% higher than last year. In a separate report for U.S. households, home prices were predicted to rise 13.6% from October 2021 to October 2022. With demand continuing to increase with more millennials entering the house buying market, price increase seems inevitable.CMC Group is one of the top luxury real estate developers in Miami and South Florida. Visit us online or contact us at 305-372-0550 today!
New trends pop up every day in our dynamic world, especially in the real estate market. The pandemic has changed and altered so much in the real estate market in such a short time, and Miami is not exempt. Agents and investors have had to adjust accordingly and sprint to keep up with today’s market. With those changes come new trends which can help potential buyers, investors, and agents get ahead of the competition in 2022. Here are some market trends for South Florida real estate to take note of:
Rent Over Buy
Competition is still high in the market with buyers and investors coming in. However, the amount of properties on sale in the market has gone down heavily. On the other hand, the luxury rental market in South Florida has grown with buyers renting before settling on a dream property. Investors and agents are starting to take notice of this rising trend of renting instead of buying and it could become the more dominant market of real estate the next year.
Buy Now, Not Later
Naturally, prices for luxury properties go up annually and 2022 will most definitely be no exception. Despite the low property sale winter season being in full swing, experts still advise buying your desired property as soon as possible. Two big reasons for buying now and not later are the limited inventory to take advantage of in a competitive market and the possibility of prices going up and potential buyers being priced out.
Know an Expert
Being more a piece of advice than a new trend, knowing a real estate expert can go a long way. Real estate experts with experience and clientele can give you a good idea on forecasted trends and properties for 2022. Having a reference that can give you tips, investing ideas, and even properties to take notice of can give you that extra step up over the competition.
CMC Group is one of the top luxury real estate developers in Miami and South Florida. Visit us online or contact us at 305-372-0550 today!