There is a mix of both negative and positive developments described in the real estate market for 2022. Today, many people are still concerned about the prospect of a housing market collapse over the horizon.
This, too, has been heavily affected by the COVID-19 pandemic. Other factors include the ongoing economic downturn and the emergence of a new buyer demographic (Forbes, 2019), in the form of Millennials.
Most predictions for real estate 2022:
- Uses of Modern Technology Emerging
- Unpredictable Results
- Movement Towards Digital Marketing
Let’s look at some of the reasons why the housing market won’t crash in 2022.
Uses of Modern Technology Emerging
The real estate sector is no stranger to technology. The industry is expected to continue adopting new tech in the coming years.
“Indeed, 2020 data show that consumers are going digital as well. A significant 44% of new homeowners look online first for properties for sale. Also, 12% used the internet to find information about the process of purchasing a home. What is also very salient is that <1% of new homeowners looked at print materials like magazines and books to find properties and learn about the buying process.” – Finances Online
As long as there is still no containment of the virus, the real-estate situation can be unpredictable. The possibility of more lockdowns can only be bad for all industries and the whole economy.
If the pandemic worsens, it could lead to less and less supply of houses as construction halts. As jobs are also affected, more and more people would also have less financial capability to buy their new homes.
On the other hand, if a vaccine is rolled out, this could put an end to the pandemic. More sellers will become confident about moving. The economy will recover fast, with a surge of buyers capable of purchasing homes at all prices.
Focus on virtual property tours
The COVID-19 situation has definitely stopped the real estate industry in its tracks. Many types of real estate-related transactions have been left in limbo because of the imposition of physical movements. It may also be the case that a disruption in financial situations has unfortunately led to the postponement of these types of transactions.
With this in mind, those who are looking to invest in real estate are beginning to adopt alternative methods. Physically visiting a particular property for inspection may no longer be feasible, mainly due to health and safety concerns. Conducting virtual property tours seems to be the next best thing — and there will likely still be innovations on this kind of technology in the future, as more people make use of it.
Through virtual property tours, halted real estate transactions may eventually resume with very little difficulty. As the buyer hopes to finalize the investment, so does the real estate broker’s aim to better their financial status.
Underutilization of commercial spaces
As said before, commercial spaces will continue to be underutilized during this time. Across the country, there have been cases of commercial buildings going up for rent or being sold off due to lack of consumer activity.
For example, small businesses that aren’t able to keep themselves afloat during this time have had to shut up shop. Companies that are providing essential services have been forced to work in skeletal working schemes, ultimately limiting the occupancy of office buildings. On the other hand, co-working spaces at the moment seem to be a thing of the past. With the imposition of social distancing measures and the prioritization of ensuring everyone’s health and safety, it’s not surprising that commercial real estate would experience a downturn.
Flock To Suburban Homes
Unless the coronavirus pandemic is contained, you can expect work from home set to continue into 2021. As more and more companies are making remote work permanent, relocating to suburban homes is also becoming popular. Living in the metro can be very expensive, that’s why people are choosing to buy houses in the countryside.
Because school and work are taken at home, more space is required in a residence. The same money spent on living in the city can be used to buy a house with more room. It can also be used to furnish dedicated home offices both for working and studying members of the family.
With travel protocols also being restricted, the opportunity to get closer to nature is also a driving factor. Because some of the places in the city are still closed indefinitely, outdoor activities in the suburbs are becoming great alternatives for bonding and entertainment.
The movement towards digital marketing
As the real estate sector moves the focus away from brick-and-mortar structures, people involved in this industry will likely begin paying renewed attention to bolstering their digital marketing strategies. The fortunes of the real estate sector heavily depend on how well they’re able to utilize online platforms to their advantage. Even more so, digital marketing is a way for them to continue being relevant and having an impact on their customers, clients, and the public as a whole.
Organizations in the real estate sector are procuring the services of those in the digital marketing industry in order to gain an impactful online presence. This is done in many ways that are ultimately centered on the customer. For example, real estate-related businesses have begun making modifications to the utility of their website to make it more accessible to visitors. They might also be taking advantage of the lucrative benefits offered by social media marketing, among many other strategies.
The future of the real estate industry needs to be able to adapt to the ongoing COVID-19 crisis. While the movement may be laxer, the industry might still be unwilling to resort to typical real estate practices.
With a new year ahead, there may be some changes in the situation. First-time buyers of entry-level homes will have to compete with each other over limited supply. Because these homes are the most affordable, it only makes sense that they get sold out faster.
People are also looking into suburban locations as remote work continues into the next year. Sellers will become more confident in listing their houses. As construction is permitted again, more homes are being built, adding to the supply.
The industry needs to focus on what they can control with regards to their marketing strategies as well as other techniques. On the side of the customers, clients, and the general public, it would be to their advantage to simply adapt alongside real estate purveyors.