REAL ESTATE TRENDS TO WATCH IN 2022
Last year, homeowners saw average home prices skyrocket nearly 20% through Q3 2021 compared to a year ago, according to the Federal Housing Finance Agency.
In regards to the luxury real estate market, the Luxury Portfolio International report reveals a continuation of dominating home purchasing-related trends that began during Q3 2020 and continued throughout all of 2021, showing that demand for luxury real estate remains high and price increases expect to continue.
Let’s take a look at some of the trends for 2022 and the years to come:
- Green Houses and Sustainability;
- More smart homes;
- Digital currency for real estate transactions;
- Virtual tours focused on visuals;
- Higher customer service expectations.
1. GREEN HOUSES AND SUSTAINABILITY
Environmental sustainability is now a major differentiator in the housing market, and buyers are willing to pay a premium to have features and amenities that better prepare them for the future. Accordingly to the Luxury Portfolio International report, 75% of those surveyed noted choosing their next home with sustainability in mind, with an unprecedented 90% noting “yes” to environmental features.
2. MORE SMART HOMES
The smart home industry is booming. While homeowners use smart home devices for a variety of reasons, the most popular products are designed to enhance home safety and energy use. Potential homebuyers are saying smart home devices have become an essential part of their lives and selling agreements.
3. DIGITAL CURRENCY FOR REAL ESTATE TRANSACTIONS
Bitcoin is probably the next “big thing” in real estate at every level. Cryptocurrency has been increasingly making its way into real estate transactions in various ways. Several sellers and agents have been using home listings to create more buzz and attention for their properties and tenants have been wanting to pay rent in digital currency.
4. VIRTUAL TOURS FOCUSED ON VISUALS
Per the National Association of Realtors recent survey, millennials made up 38% of U.S. homebuyers in 2020. Most of these buyers toured properties online, and nine out of 10 credited photos as the determining factor, a trend spread worldwide. High-quality photography, virtual tours, and short film production have become essential for a customer-centric experience.
5. HIGHER CUSTOMER SERVICE EXPECTATIONS
As residents and tenants expect the same strong customer experience they get from delivery apps and other online platforms from the places they work and live, real estate sellers that deliver on those expectations will be set apart. Critics believe in five years every property will have a 3D tour that will be used for both operations and marketing purposes.