Since the beginning of the COVID-19 pandemic, very few economic predictions have played out as expected. Offices, restaurants, and real estate were hit hard; the stock market was affected, and many people lost their jobs. Most people were afraid there would be a long term economic downturn- fortunately, that didn’t happen. The economy and real estate industry bounced back quickly and even went on to reach unprecedented heights.
As we head into 2022 we can expect:
1. Millennial Buyers Will Dominate
Millennials possess a lot of potential and a large percentage of them are poised to become first-time homebuyers in the up-coming year.
Many Millennials have opted to work remotely and are eager to take advantage of low interest rates, appreciating values and home ownership. Millennials make up one of the fastest growing segments of the economy and are purchasing homes in large numbers. The millennial market has brought about a high demand for technology in new and existing homes. Currently, people are searching for homes to purchase using their mobile devices. Some prospective buyers are taking advantage of real estate mobile apps since they make the process of searching for a home easier. As proactive real estate agents we are able to target millennial homebuyers using social media and digital marketing tools.
2. Rising Mortgage Rates
The Federal Reserve has tapered the mortgage-backed securities purchases due to rising inflation, which means mortgage rates likely will also rise. Economists expect the rise in mortgage rates will be steady and will begin as we head into the second quarter of 2022.
3. Increase in Homes for Sale?
During the pandemic, locally and nationally, the inventory of homes for sale has been at an all-time low- forcing many municipalities to take a closer look at their permitting and zoning rules. Many towns and cities are struggling with balancing the need to maintain open space vs. provide housing for their residents. We expect to see more thoughtful changes to Zoning and land use regulations that will diminish the impact of development on the climate crisis while providing much needed housing.
One of the most important lessons from the past year is that no one can predict the future. Buyers and Sellers should continue to live their lives and make decisions on what is best for them and their families and not try to predict or time the real estate market.
If you are considering making the move to Vermont our experienced agents would be happy to speak with you about the housing market and options available to you. Since 1998, we’ve helped thousands of local clients build wealth through real estate. The Lipkin Audette Team understands that a successful real estate transaction needs to be designed to fit each individual’s unique set of needs and goals.
To learn more about our demonstrated, client-focused strategies & services or to speak with an agent about buying or selling real estate in Northwest Vermont, give us a call at (802) 846-8800 or email us at Team@LipkinAudette.com.