to Look for in 2022
If you’re a real estate agent, or interested in becoming one, you’re likely aware that the real estate market is a constantly changing one. There are always new real estate trends to keep up with! I know how challenging market fluctuations can be because I’ve lived and learned through some of the toughest times in the housing market.
Today, I’m the CEO of a multi-level real estate brokerage firm—we sold $838 million last year alone. So, I certainly have a lot of experience with successfully adjusting to the times. There’s plenty that I can teach you about the real estate business and how to overcome the seemingly scary market trends we have thrown at us every year.
Today, there’s a lot of discouraging information out there about the post-pandemic market. We’re even seeing some articles claiming that “it’s not a great time” to become a real estate agent. I disagree with such claims! The pandemic certainly shook up the industry, but I’m not sure if calling it a “challenging market” is entirely accurate. I prefer to think of it as a unique market. And honestly, every year brings some unique changes in some way.
Here are some of the most important real estate market trends for 2022.
Trend #1: Demand for vacation homes is rising.
Okay, in reality, the demand for housing across the board is through the roof right now. COVID-19 and shelter-in-place guidelines have made buyer demand soar. Over the course of the past two years, we’ve been seeing a rare example of theseller’s market, which, on paper, should make it easy for us to sell properties. This market is unique, though. We’re seeing homeowners who are afraid to sell because they aren’t sure where they’ll live next. However, you can use this fear to your advantage, if you’re able to present your seller with a solution.
One possible solution is a vacation home. Second homes have become extremely popular in the past couple of years. This is all thanks to a combination of buyers wanting to live in safer areas and take advantage of remote work opportunities. If you have clients who are having second thoughts about selling, try showing them active listings for a vacation home. This may be what convinces them that NOW is the time.
But how can you show off listings if you don’t have the inventory? After all, low housing inventory is one of the main market trends of this year.
One of the main concepts I teach in my How To Win In A Low Inventory Market course is that you can actually CREATE markets where none exist by fostering relationships with other real estate agents. Start by making a list of all the agents you know about in your area. Then, think about which agents seem to always have inventory, always have clients, or can do anything else you need. This is your V.I.P. list of agents you want to become friends with.
Of course, you don’t want to just call these agents up when you want something. They’re just as busy as you are and are trying to figure out ways to adapt to this market. And, really, nobody needs to be harassed. Instead, present them with something of value when you make contact. Find an agent you know of who tends to have these high-demand vacation homes available. In this scenario, you’re connecting your buyers with their sellers, so you’re forming a beneficial deal for each party. Just like that, you can CREATE a market where there wasn’t one just a few moments ago. For more techniques that create markets, check out the full course.
Trend #2: Interest rates are at a historic low.
There are three big things that make the current market unique. Demand for housing is extremely high, while inventory is at historic lows. There’s a historically high amount of real estate agents in the business right now. And interest rates are at historic lows.
With low interest rates and high demand, homebuyers may be willing to buy at higher price points than before. It’s also super easy to get pre-approved for a loan right now. Low mortgage rates can always sweeten a deal.
My team and I always make it a priority to keep up with listing prices and interest rates. This helps us help buyers make the most informed decisions possible based on the latest data. Buyers always have a price range that they want to stick to, or at least they THINK they do. But if you can show them the value of what they stand to gain by going up just a bit on their price range, you can start closing home sales for higher-value properties.
You can apply what I call the “wow” moment to real estate sales. If you’re working with prospective homebuyers who are still in the looking around phase, ask if you can “wow” them with a property that really knocked your socks off. You’ll disarm the situation by explaining that you don’t intend for them to buy the property, but they just need to see this place because of how COOL it is. They have nothing to lose by agreeing, so they’ll probably do it!
Once you’ve “wowed” them, ask if you can show them a similar place that comes at a significantly lower price. It might be outside their initial price range, but through a combination of demonstrating greater value and taking advantage of low interest rates, you stand a good chance of convincing them to buy a property they’ll really love with greater home value.
Trend #3: Social ads are the way to go.
When you think about what your job really is as a real estate agent, what do you come up with? Is your job to sell homes? It is, but how do you do that in the first place? You connect buyers to sellers. So, is that your main job? How do you form these connections in the first place? Where do buyers and sellers come from? They come from lead generation. Generating real estate leads is your primary job as an agent.
Maybe you’ve been getting along by advertising your new listings in the paper, in digital spaces, or on billboards. Maybe you generate new leads by meeting people in person. These are all important lead generation techniques, and you still need to do them. But, they aren’t the BEST way to generate the most leads at the lowest costs in today’s market.
My work, and my level of success, started to change dramatically when I started focusing on digital marketing. I’m specifically talking about social ads. It’s impossible to deny the power and level of influence social media has over people, so if you’re not doing it already, you’ll need to take advantage of social trends if you really want to boost your business.
My team and I focus primarily on Facebook and Instagram ads because I find that Facebook Ads Manager has the most robust options for my needs, but you can use whatever social channels you want. Social ads are generally low-cost, and they give you the chance to make an impression on an incredible number of people. I don’t know how you’d successfully sell these days without social ads, so make them a part of your tool kit for this year and every year after.
In my Social Ads course, I teach what I call the GPC approach for making an effective ad. I recommend checking it out to learn more about what social media can do for your real estate business.
These are just a few important trends that you’ll need to be aware of and start following this year to experience reliable business growth. My full course offerings can teach you a great deal more, so I hope we can continue our real estate journey together.
- How to Get Started in Real Estate
- 6 Proven Methods for Generating Real Estate Leads
- How to Get Your Real Estate License in Massachusetts