The Novel Coronavirus disease 2019 has hit the whole world and the real estate market is no exception. The pandemic has caused permanent disasters in every aspect of the world. The N number of deaths, lockdown all over the world, and economic downfall, indeed, Covid-19 has caused crises in unimaginable ways. One specific area that was hit very hard was the real estate market. Suddenly the surging deaths all over the world, made people realize the importance of personal financial security. However, over the last few months, the economic growth has seen an upward trajectory and so has the real estate market. The housing market has followed relatively low mortgage rates and more positive consumer sentiment fueling a sudden interest in home buying. In the hope of normalizing back to the pre-pandemic life, the Real estate sector is showing signs of healthy growth. The housing market has followed a similar trend, with relatively low mortgage rates and more positive consumers fueling a sudden interest in home buying.
With the sustainable and constant performance of the real estate market, the investors are showing interest and it has increased the graph. One of the reports by the Real estate in 2022 Outlook, said the Indian real estate market is having good growth in 2022. The residential sector saw a significant rise of 27% from January to September 2021. The sales were up by 5%. Despite the fall of the real estate market in the years 2020 and 2021, the market rebounded back with huge performance and with some new trends in the market like low-interest rates, affordability, and other favorable factors. The real estate market expanded the growth in tier 2 and tier 3 cities and it is expected to grow more in the coming years. No one knows what the future has for us, but we see some of the real estate trends of 2022 by the economists.
Before the Pandemic hit the world, there was low stock of housing in the country and the pandemic has made the situation worse than before. Due to the lack of labor and insufficient funds, production dropped down. Though builders are trying to ramp up production, inventory will remain scarce. The number of houses listed for sale saw a low record last year in November. According to reports, there will be more listings in the spring and summer of 2022, but there won’t be enough houses to meet the demand. The shortage of houses is expected to be continued in 2022, and the gap shrunk in 2021, will likely shrink again in 2022.
Yes, you heard it right. According to the reports from the economists, there is no drop in prices. If any one of you were hoping, that competition will slow down in 2022, then bad luck. The less inventory, less production, and low mortgage rates are all in favor of the seller. Potential buyers can wait till summer for more house listings, but nothing can be predicted. But seeing the market trends, the home values may rise to some extent but, not like in 2021.
If you are a first time home buyer, then you are at a disadvantage. The housing rates are at a peak, for first time home buyers when compared to the older generations. This is because the homes are much more expensive now and since the pandemic has hit the world, it has become much more difficult to find a house, at a reasonable price. first-time homebuyers are likely to need financial help from family and friends to make a down payment and this issue has been exacerbated since the onset of the pandemic and is expected to be continued in 2022.
Experts always say, do your research ahead of time. If you are planning to buy a home in the next year, watch out for the new listing of houses, including coming soon as well. Make sure to make the site visit and decide soon. That said, don’t overpay. Prices will be up, but that doesn’t mean buying something outside of what’s reasonable for your budget.
Compare home prices from the prior year in your local area to the listings you are currently considering. If the same type of house is listed for significantly more, it makes more sense to wait for something else.
Well, on the whole, the economists are expecting a sudden rise in 2022 for the real estate market. Home sales are expected to increase by another 6.6% and home prices to rise another 2.9% on top of 2021 records. There are a lot of Millennials aged 26 to 35 who are prime first-time home buyers and affordability is a top consideration for home buyers. Demand from these young households will keep the market competitive and fast-paced. Since the market has seen an upward growth, there is a lot of spike in the demand for retail spaces such as stores and malls. The splendid shift from traditional working stereotypes and work from home trends to coworking spaces and new styles of working has made developers create working spaces to be smarter and technologically advanced. Large scale investments are always an added advantage, to stimulate the economic growth of the country. The real estate sector is the second-largest sector in terms of employment next to agriculture and is expected to create more job opportunities.
To summarize, 2021 was a great year for real estate, especially the housing or the residential market. The low-interest rates and demand for their own houses acted as the catalyst and is expected to grow in 2022.
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