The 2021 market showed record lows for inventory and new listings, and while it’s hard to predict what’s in store for 2022, we can use data for insights on what may be to come. Here’s what we found.
While we were taking stock at the end of the year, we looked at the 2021 NAR Profile of Real Estate Firms, where more than 50% of brokers surveyed responded that maintaining sufficient inventory, housing affordability, and competition from nontraditional market participants were the biggest challenges anticipated for the next two years. The NAR survey also reported that 50% of firms expected competition from nontraditional market participants to increase.
Other trends and challenges our broker customers predicted:
Housing prices will level off
Interest rates will increase
Lack of affordable housing
Increase in iBuyer market share (nontraditional competitors)
When it came to thoughts about the state of the real estate industry, there was concern about real estate professionals staying up-to-speed on customer trends and adapting to those needs.
While the past two years taught us that no one can predict with certainty how the next year will unfold, a recent RISMedia survey reported that 22% of brokers expect transactions to increase this quarter (Q1 of 2022), while 43% expect transactions to remain flat. Whether you expect transactions to increase or level out, there is no better time than now to review your business strategy. Ask yourself: Am I using the right services and tools to promote my business, manage transactions and conduct operational tasks effectively? Preparing your business and team for change turns growth from optional to inevitable.
Our quarterly market comparison infographics illustrate the same patterns of decreases in nationwide inventory and new, under contract, and sold listings. The only increase is in listings referred to as “off market” in this infographic because they did not sell and were removed from active inventory (also referred to as expired, withdrawn, or removed from market).
Why are these listings being pulled?
A trend many of us in the industry noticed is the increase in asking prices, with prices rising to a new high in September, up 12% year over year, according to Inman. As prices have increased, consumer interest has decreased, leading to homes sitting on the market for longer, and then being pulled from the market altogether. Homebuyers may be less willing to enter into the heated bidding wars of the past two years and may be waiting on the sidelines for the market to cool. As a result, some properties that may be seen as overpriced may not entertain offers in the way they would in 2020 to mid-2021.
How did your market perform, compared to the national averages?
If you don’t have a ready answer to that question, let us know — we have the tools to transform your market data into information that empowers you to stay ahead of market trends as you grow your business. And to get started, make sure to sign up for our free weekly market report, delivered straight to your inbox.