As the 2022 real estate market evolves, so do the patterns of home buyers and owners that are navigating these unpredictable waters. There’s no concrete way to predict how this year will unfold and what new phases will emerge, but there are a few key patterns to pay attention to now. Let’s take a look so you can adjust your strategies accordingly.
As we discussed last time, mortgage rates have been on the rise and have only continued their climb (now sitting at 3.56 percent as of January 20th according to Freddie Mac). This rise in mortgage rates traditionally translates to a dip in refinance applications and an increase in focus on mortgage applications. True to past patterns, mortgage applications rose 2.3 percent from the previous week for the week ending January 14th, according to the Mortgage Bankers Association.
Experts Anticipate More Purchase Mortgage Applications Than Refis This Year
Throughout 2020 and 2021, the historically low interest rates meant waves of refinance activity that shifted the advertising focus of financial professionals. This new swing away from refinance applications means a change in strategy is necessary to stay relevant in the 2022 market (at least for now…).
It’s also important to look at how low inventory has affected homebuyers and their purchasing patterns. According to the National Association of Realtors (NAR), the effects went beyond the frequently discussed bidding wars that occurred throughout 2021. According to a recent study by NAR, homebuyers who purchased a home in 2021 did so after only viewing 8 homes. This is the lowest number of homes viewed before purchasing since 1987, a statistic also tracked by NAR.
Low Inventory Impacting Buyer Behavior?
While low inventory is partially the cause for buyers looking at fewer homes before taking the plunge, it goes deeper than that. Thanks to the internet and evolving real estate tech, prospective buyers are viewing homes online before making the drive to personally tour a home, reducing the number of homes they visit in person. We all know what platforms like Zillow and Redfin do and how homebuyers value their convenience, but did you take the effects of these platforms into account when creating your strategy for outreach? People want a more convenient home-buying process and advancing technologies are creeping their way into the real estate world and changing the patterns of locating professional services like realtors and mortgage professionals.
Just check out some of our past blogs on how necessary people find technology to the home-buying process and some of the latest tech to enter the real estate space.
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