It’s no secret that the real estate market has been a whirlwind over the last few years, but as the dust settles, where will the market end up as 2022 progresses? Will buyers remain fierce in the market or will more families choose to wait and see how the market moves? According to experts, it’ll be a mix of both.
There’s Something for Everyone in 2022
According to the 2022 Housing Forecast from Realtor.com, Michigan residents can expect for a lot of competition in the first-time buyer market but the demand won’t outpace inventory as heavily as 2021. What this means is that there will be more opportunities to find a home even with a competitive market.
Those renting will be happy to see new chances to purchase a home as rent is expected to continue rising late into 2022. In the Detroit metro area alone, sales are expected to jump 6.3% according to Realtor.com.
Outpacing Detroit we have Grand Rapids, seeing an estimate of a 6.6% increase in sales accompanied by a 7.1% increase in price. Sellers are looking to take advantage of the wave of buyers who had their plans delayed due to the pandemic, so it’s best to prepare now if you plan to buy in 2022.
What’s Driving the Changes?
The world slowly getting back to normal paired with new changes to the workplace has led to more first-time home buyers entering the market. Young professionals looking to start a family or invest in a home are taking to real estate markets outside of the city.
Suburbs and outskirts of metro areas such as Detroit are seeing remote workers moving in in droves. With a strong employment market and increasing salaries, millenials are able to accommodate higher prices without breaking the budget.
It’s going to be a few more years before this demand is kept up with by new listings in Michigan based on Realtor.com’s projections. In fact, standard 2,000 sq ft family homes saw nearly 17% in price increases over the last year which will lead many to look for smaller homes to remain in their preferred neighborhoods.
The Bottom Line for 2022
The future of Michigan housing markets is a competitive one, but with a more dynamic ebb and flow bringing surprising opportunities along the way. No matter what your housing goals are, it’s important to remember that you’re in control of where your real estate hunt goes.
When you’re ready to start shopping for your next home, let the Potempa Team help you find the best loan terms. With insights into local real estate markets and access to the best possible rates, the Potempa Team is your secret weapon to beat the competition in 2022 so don’t wait any longer, contact us today.