Here’s something we can all agree on: The unpredictable impact of COVID-19 makes it challenging to envision what will happen in real estate in the year ahead. Despite this uncertainty, there are clear escrow housing trends and technology to expect in 2022.
The housing market will finally take a few small turns away from the themes of the pandemic due to a projected increase in inventory. Additionally, first-time homebuyers will enter into the ever-competitive search for the perfect home as rental prices skyrocket.
Here are the 5 most essential trends and technology for the escrow housing market you need to know in 2022.
1. High Housing Prices Continue in 2022
In a similar fashion to recent years, experts predict high home prices are here to stay for now. According to Realtor.com, in 2022, there will be a 2.9% increase in the median home sales price according to the 2022 Forecast for Key Housing Indicators.
Economic trends like low mortgage rates, rising income levels, and persisting buyer demand prompt the seller’s market to continue in 2022. But it’s not just a seller’s market.
Fortunately for buyers, the 2.9% rate of increase is more moderate than the unprecedented market trends of 2020 and 2021. A bright spot for buyers is that home inventory is finally expected to improve. In California, 31% of consumers think it will be easier to find a house over the next 12 months.
Real estate industry professionals will want to capitalize on this optimism and other escrow housing trends and technology in 2022 to motivate buyers to enter the market.
2. Work from Home Expands Suburban Market
Work from home (a.k.a WFH) is also here to stay! 95% of experts confirmed a permanent shift to an increased preference to work remotely, at least part-time.
Agents take note. The WFH trend will impact home searching preferences!
How Remote Work Changes the Real Estate Scene
Hybrid and remote work options give home buyers more flexibility when it comes to choosing a potential home location. Work commutes will no longer be the determining factor that they once were.
Make no mistake, location will still be crucial to the buyer. But it will be more about which location provides the buyer’s total package: the right mix of space, versatility, and affordability.
In the long term, suburban locations expect to see a resurgence as people seek to optimize their square footage and craft the perfect WFH office space. The flexibility in work modality may also enable first-time buyers to consider more affordable housing markets that were incompatible with their traditional work arrangements.
3. First-time Home Buyers DEFINE the Housing Market
With more than 45 million millennials in the prime first-time home buying ages of 26 to 35 in 2022, this group is expected to be at the center of the housing market this year.
Additionally, this subset of the population may not need much persuasion to become buyers instead of renters. In 2021, the national median rent increased by 16.4%. For this reason, many millennials may walk away from their rental agreements and enter uncharted territory in the housing market.
As a result, escrow housing trends and technology are likely to cater to this audience in 2022. Real estate professionals, consider the following tips to capitalize on this budding market segment:
- Provide clear and convenient communication methods for clients to contact you
- Create resources to guide buyers through complex processes such as the escrow process
- Increase transparency around your services and rates
Now, let’s move on to the next Escrow housing trend you can expect to see in 2022.
4. Real Estate Technology Is Paramount
COVID-19 brought an unexpected set of circumstances that upended many traditional real estate norms. In 2020 and 2021, real estate agents and brokers used technology to stay afloat and transition. Now, industry experts know that the adaptations that minimized in-person contact in real estate are simply the beginning of a new digital era.
With that said, real estate agencies and independent professionals alike are embracing innovative technology trends in 2022.
Innovative Technology Speeds Up the Transaction
The main incentive of real estate technology is that it speeds up the entire transaction from start to finish.
Whether it’s basic tools such as virtual home tours or agents creating seller net sheets online from their phones, technology is a time-saver for everyone involved. So, in 2022, be on the lookout for more digital services that facilitate the entire real estate transaction.
We can all agree that there’s so much technology available to leverage with customers. Both experienced and inexperienced home buyers and sellers will be happy to benefit from the convenience of new tech.
5. Mobile-Reliance For The Win
What is the recipe to ensure a new home buyer is pleased with a digital transaction?
Answer: Give them everything they need directly on their mobile phones!
Mobile apps should provide customers with:
- 24/7 access to information about properties
- Easy collaboration between the customer and real estate agency
- A modern and sleek user experience
- Time-saving features that help customers feel like they are in control
Sure, smartphone apps are a way to tap into the growing millennial buyer market, but these apps can also completely transform the operations of any real estate agency at the same time. Apps cut out time-consuming steps by connecting agents, admins, and financial managers all in one portal. When integrated well, apps can completely replace the need for desktop services.
In 2022, expect to see even more full-service mobile apps for escrow and other real estate transactions.
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