Joseph Grinkorn asked if major trends are emerging for real estate in 2022 after the year 2021 is marked by an explosion in sales of old homes, a price increase of 7.4% on average, and stability in mortgage rates. New or old housing, homeownership, or rental investment, discover the developments in the real estate market for the year to come.
Real Estate Market In the USA in 2022
Joseph Grinkorn shares that, Low-interest rates, renewal of tax incentives ( PTZ, Pinel, etc.), and medium-sized towns in the provinces taken by storm. If the real estate market in 2022 seems to be following the same trends as in 2021, a change of pace could all the same even occur. Explanations
The Countryside: The New For Real Estate Buyers?
With the pandemic, a number of households have made a change in lifestyle, with the increasingly frequent use of teleworking. New practices are reflected in the real estate sector by a trend toward urban exodus.
In 2021, the purchase of apartments in large cities and their city centers was less popular than that of houses with exteriors, located in much smaller cities, according to a study by the Higher Council of Notaries ( CSN). As proof, the price of apartments increased in the USA by 5.2% between January and October 2021, against + 9% for houses.
In addition, the strongest increases in the price index per square meter were observed in urban areas. But even if this trend should be confirmed in 2022, we should not bury investment in the major cities of the US too quickly. Their economic attractiveness remains strong.
How Will Real Estate Price Evolve In 2022?
In 2021, as in previous years, real estate prices have continued to climb. But what are the prospects for 2022?
Towards A Stabilization Of Real Estate Prices In 2022?
In 2022, the surge in real estate prices experienced in recent years should be more reasonable overall. An S&P study expects real estate price growth to be contained at 2% on average in the USA in 2022.
Several Reasons Can Explain This Tendency To Stabilize Property Prices:
The housing Market – One of the always developing business sectors on the substance of the earth, has now dialed back a little. With changing assessments and demonetization throughout recent years, this market has seen major promising and less promising times however has altogether recuperated and strengthened itself a great deal. Offering to you, a portion of the key factors that influence value in the housing market are:
- The exaggerated increases in real estate prices in certain areas have got the better of potential buyers: insofar as purchasing power does not rise as quickly as prices, a drop in demand could be observed in 2022
- The provisions of the High Council for Financial Stability to prevent the risk of over-indebtedness have curbed access to mortgage loans for certain households.
- According to Joseph Grinkorn, the lack of housing for sale discourages potential buyers, who postpone their real estate projects until later.
- 2022 is an election year: with each presidential election, a certain wait-and-see attitude wins over buyers and sellers of real estate.
- This new year could therefore give investors and buyers a little more power in Real estate transactions: more price negotiation, and slightly less tight sales deadlines…
- A wide disparity in the rise in prices in the old sector depending on the region
If this upward trend in prices as Joseph Grinkorn explained should settle down in general, certain areas should still show increases of around 10%, according to the Higher Council of Notaries.
Towns in sub-prefectures, close to large towns, currently enjoy a strong appeal.