A look at 3 big real estate trends in 2022
January 19, 2022
- Top agents plan for success by working their plans.
- Identifying trends in the real estate marketplace in 2022 can set you up for another banner year.
- Tapping into these three trends in 2022 – more access to Power Buyers, improving inventory, and more Millennials ready to buy – can mean more business for you.
- You can start the new year off by supporting your buyers and sellers by recommending home warranty coverage.
Many top real estate producers who practice the adage “Plan your work and work your plan" know it is often crucial to their ongoing success. Looking at trends in the marketplace can help you decide where to focus your business and marketing plans to set you up for even greater success.
Here are three big real estate trends that can help you build more business in 2022:
- Power Buyers are everywhere: Power Buyers, a term coined by University of Colorado scholar and real estate strategist Mike Delprete, include innovative new startups offering creative ways to help buyers win more deals. Offerings include programs that turn your first-time and other buyers into all-cash buyers. These new “cash to close” programs waive inspection, appraisal, and financing contingencies upfront. Research shows your buyer has a much better chance of submitting a winning offer with a cash offer than with traditional financing.
Many potential buyers are locked into their current homes because they don't know where they would move. Another solution from Power Buyer firms helps solve this problem by assisting sellers to purchase their next home before selling their current one. These programs also allow sellers to take their time to get their existing home ready for sale – after they move into their new home to maximize its value. Best of all, Power Buyers now operate nationwide in almost every market.
- Improving inventory: Experts predict builders will be able to build and sell more new homes in 2022 as supply-chain and labor issues subside. 2022 will be a busy year for new homes, despite continued inventory, labor and supply challenges, notes Lawrence Yun, chief economist for the National Association of Realtors. Remember that both existing and new homes need home warranty coverage as builder warranties vary greatly and may not fully protect your clients.
“If you are an agent who typically doesn’t show new homes to clients, this could be a great niche,” says Ben Caballero, the #1 agent in the US. Ben only lists new homes for builders, selling more than 6,400 new homes last year in just four markets in Texas: Dallas-Ft. Worth, Houston, Austin, and San Antonio.
- More Millennials are ready to buy: Since 2014, Millennials have comprised the largest generation among all home buyers, according to NAR research. In addition, millennials are hitting their peak home-buying years – as the oldest ones turn 40, experts expect 2022 to be a record year for Millennials to buy home.
New NAR research also notes that 2022 will be a terrific year for first-time Millennial sellers as this group moves more frequently. In addition, Pew Research shows Millennials have household incomes two to four times higher than other age groups, Forbes reports. That’s why Millennials are being called “the driving force” in the housing market, as they also are the largest generation by population.
You can prepare your Millennial buyers and sellers by ensuring they have Cinch home warranty coverage in 2022. Build Cinch home warranty coverage into your 2022 business and marketing plans, and both your buying and selling clients will gain peace of mind as they will be well covered.
You can learn more about how agents work with Cinch to protect their clients at Cinchrealestate.com.
Abstract: Real estate agents can build more business by tapping into three big housing trends in 2021.