Purchasing and financing a new home is one of the biggest decisions you make in your lifetime. Other than the obvious financial knowledge you must have regarding purchasing a home. It is also essential to see the market conditions.
While you can discuss the best possible mortgage solutions with your Dallas mortgage company, you need to keep an eye on the current real estate market as well before moving forward with your home buying decision.
Remember, the real estate market sees its lows and highs, but these aren’t consistent.
In today’s post, we are going to tell you everything about the real estate market predictions for the year 2022:
Real estate market due to Covid-19 Pandemic
It is no surprise that the real estate market in Texas State, such as Austin, Dallas, and Houston were quite competitive throughout 2021.
But, if we rewind a little, and go back to the Covid-19 Pandemic, realtors, as well as buyers, saw drastic changes in properties. We have seen homeowners exit the country and move to more affordable cities, such as Texas. This was one of the major factors why the prices significantly increased.
Since the advent of the Covid-19 Pandemic began, the real estate market is seen to be slowing down. This is due to the lockdowns and restrictions that have significantly impacted the progress of real estate projects and business operations.
If we talk about Texas State, Austin, Dallas-Fort, and Houston show the highest number of housing sales in the last 3 months of 2020. But, after this indicator, the real estate market started to slow down.
At the beginning of 2021, Texas was seen to have the most single-homes sold. Which were the highest of that time. But, the numbers started to decline as soon as the pandemic’s aftereffects hit the US real estate industry.
Real estate market predictions for 2022
Forecasts for the real estate market are seen to make an upward trend for home prices and will continue for the rest of the year 2022.
Texas Real Estate Research Center has stated that apart from the slowing down of the real estate market in the year 2021. The new-home construction process will be seen to rise in the upcoming year of 2022. But, reports have stated that the growth in the upcoming year. Will be at a comparatively slower rate than the past two years.
It is predicted that housing inventory will remain on the low in the major cities, also including Dallas, Texas. Moreover, it is also predicted that the supply and demand ratio. And numbers will also push prices north again in the upcoming next 12 months.
Because of this fact, the real estate market in Texas State will continue to be characterized by strong demand and low inventories in the upcoming year of 2022.
Let’s take a look at the predictions for the year 2022 for the major cities in Texas. If we talk about Austin, its property trends have been stuck on ludicrous speed for at least more than a year now.
This is due to the rise in population, and the limited number of supplies that have boosted competition. And as a result, an increase in home prices as well.
Zillow has predicted that the home prices, especially in the metropolitan area. Will be seen to increase up to 17.8% in the next year.
Dallas, on the other hand, has witnessed steady growth in home prices over the past year or so. Which is again due to high population growth and limited supply. Zillow stated that the average home prices for the Dallas metropolitan region increased to up to 19.4% in the past year.
Now, if we talk about the upcoming year of 2022, it is predicted that the median. Home price value will again increase to 14.5%, which is estimated to be for the next whole year.
Houston is also seen to have a positive forecast, which is going to extend over to next year. Zillow has predicted that the home prices in the Houston metropolitan area will be seen. To increase to at least 12.9% for the year 2022.
Reasons for the predicted trends
We’ve talked about the real estate market trends that are to be seen in the coming year. But, if we take a closer look at the reason behind this trend. It could be seen that there is a common trend which is high competition and low supply.
In other words, the dynamics of supply and demand are the driving forces behind these changing figures and trends.
In addition, some other common reasons for these predicted trends are not enough homes being available to meet current demands, increase in population, competition in the market, and of course, the global Pandemic.