As a 100% commission broker, you get the benefit of keeping all of your commission on real estate sales. This model encourages the agent to think more critically about how and what they want to manage their financials and resources. The more successful you are, the more money you will make.
If you are looking to make more money on your real estate transactions, chat with Stanfles Realty who is now hiring top-performing new associates. The 2021 real estate market was incredibly hot, with a lot of opportunities for 100% commission brokers to increase their profits. Let's look at what is expected for 2022 real estate trends.
The Historic 2021
2021 was a year filled with skyrocketing house prices. Realtors saw a return of bidding wars, along with basement mortgage rates. There were lengthy foreclosures and eviction suspensions that complicated a lot of sales, but it was a historic year.
The question a lot of people in the real estate industry are asking is what will happen in the new year? Will 2022 be more of the same? Can investors and buyers expect fewer challenges?
These are what are expected to be the 2022 real estate trends and what you as a100% commission broker can look forward to.
1. The Increased Prices on a Home Will Begin to Slow
Through 2021 home prices increased by more than eighteen percent from what they were in 2020. Fortunately for those looking to buy a new home next year, those days are expected to be numbered. There have not been any expert predictions that home prices will decline, but analysts are expecting prices to increase at a slower pace.
2. Inventories Are Expected to Improve
One hurdle many in the real estate industry were challenged with last year was limited inventory. There was a huge demand for housing, but too few for-sale listings. Inventory for houses for sale was at all-time lows.
There is not a huge turnaround in this problem expected next year, however, buyers should see some relief. The inventory drought has been receding and the difference between last year's inventory and next year is expected to shrink.
3. Foreclosures are Expected to Increase
Many have faced financial struggles through the past couple of years during the pandemic. Foreclosures have been held off due to a nationwide foreclosure ban. That suspension was lifted and foreclosure rates have been increasing since July.
The third quarter of 2021 shows significant increases in foreclosures. Foreclosure rates are likely to continue increasing as the new year rolls in, especially for those homeowners exiting forbearance programs.
4. Mortgage Rates are Expected to Increase
Mortgage rates are expected to increase as the Federal Reserve tapers its mortgage-backed securities. There are already signs of this with the jump in average thirty-year-fixed rate loans being secured in the last few weeks.
According to one expert, mortgage rates are expected to rise due to stronger economic data as the Federal Reserve pulls back on its stimulus. This belief is backed by others, and the Mortgage Bankers Association expects rates will rise steadily throughout the new year.
The Markets are Getting Closer to Normal
For most, it is expected that 2022 housing markets will be a little closer to normal than they were in 2021. While it will not be a complete turnaround, buyers should experience fewer headwinds when they go out looking for a property to purchase.
Where You Want To Be For The 2022 Real Estate Trends
Stanfles Realty is now hiring top-performing and motivated associates to join our team. Being a 100% Commission Agent with our team means you can experience more success and greater profits. Contact us today if you are ready to join our winning team.