Pandemic-ignited home-buying, driven by supply shortage and low mortgage rates, shows no signs of slowing down. \u201cWe expect a whirlwind 2022 for the housing market,\u201d says Danielle Hale, chief economist for Realtor.com, with home sales increasing 6.6% and home prices 2.9% above 2021 highs despite a small uptick in inventory.<\/p>\n\n\n\n
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<\/figure><\/div>\n\n\n\nWhile affordability, rising interest rates, and supply and labor shortages will continue to pose challenges, \u201chome buyers should find the coming months to be more advantageous than any time in 2021. While sellers remain in a very strong position, price stabilization and the continuation of competitive interest rates may bring some welcome relief to buyers in the new year,\u201d notes Nick Bailey, president of RE\/MAX LLC.<\/p>\n\n\n\n
Home living tops investment<\/strong><\/p>\n\n\n\n U.S. real estate remains among the most attractive and largest asset classes for investors and families alike. \u201cFor the second year, homeowners have told us that their main reason for taking on projects around the home is to better meet their needs. Before the pandemic, return on investment was the primary motivation. This is a huge shift and something we know will continue throughout 2022, especially as people continue to spend more time at home,\u201d says Robert Morgenstern, principal of New York City-based Canvas Property Group.<\/p>\n\n\n\n Tech amps up<\/strong><\/p>\n\n\n\n Property management technology\u2019s capabilities and use will continue to grow for reasons of convenience and social distancing.<\/p>\n\n\n\n \u201cWith the right data collection tools and overall acceptance by industry professionals, real estate will greatly benefit from the increased use of technology in 2022,\u201d according to Paul Ryll, owner of Oscar Mike Mobile Appraisers of Greenville, S.C. And with homeowners making lifestyle changes centering around hybrid and remote work trends, \u201cthe need for digital platforms and tools will be greater than ever, and much of the industry\u2019s ability to keep up with demand will rely on the newest apps and offerings.\u201d Ryll also predicts increasing use of automated employment, income, rental payment and valuation verifications, and remote closing technologies.<\/p>\n\n\n\n \u201cFrom a technology perspective, there has been an acceleration of the adoption of digital tools for the closing process. We expect these trends to continue and increasingly expect the further proliferation of digital tools during the processing of the loans,\u201d adds Bill Packer, executive vice president and chief operations officer for Parsippany, N.J., mortgage financing provider American Financial Resources Inc.<\/p>\n\n\n\n Tech news source iTMunch contributes another perspective. \u201cReal estate technology is expected to become so sophisticated that buyers will be able to visit apartments, houses and properties virtually while in the process of selecting. This exciting trend will eliminate the time as well as expense of visiting multiple real estate properties.\u201d<\/p>\n\n\n\n Such technology includes artificial intelligence and chatbots that answer inquiries and FAQs when agents aren\u2019t available. Expect a bigger role for big data and predictive analytics in locating houses and properties that meet buyers\u2019 criteria, with blockchain technology making transactions more transparent and secure. In addition, \u201cwe expect more real estate professionals to adopt analytics tools, customer relationship management (CRM) systems and other business intelligence platforms that allow them to do business better and faster,\u201d says Aprio, an Atlanta-based CPA and advisory services firm.<\/p>\n\n\n\n ESG criteria broaden<\/strong><\/strong><\/p>\n\n\n\n Environmental, social and governance (ESG) policies will adopt new characteristics, with diversity, equity and inclusion increasingly becoming critical parts of companies\u2019 ESG strategy. \u201cCorporate stakeholders will be looking to companies to be more proactive in changing any operations that may have inherent bias in their systems,\u201d says ESG consultant Timothy J. McClimon, writing in Forbes<\/em> in January. \u201cThe bar keeps getting raised each year, and companies will be expected to continue to improve rather than rest on past promises and commitments.\u201d<\/p>\n\n\n\n Growing mandatory ESG disclosures represent a significant challenge for many companies, prompting a search for \u201csoftware providers for assistance in creating a centralised, single source of truth, which can be used as part of decision making and reporting,\u201d says London-based insurance industry consultant Oxbow Partners.<\/p>\n\n\n\n