Two years after the COVID pandemic hit the United States, more signs of hope emerged, particularly within the commercial real estate sector.
Recent omicron fluctuations, inflation, and continued volatility in the stock market have created unique opportunities for the real estate market. There has been a significant increase in real estate investment, which is expected to continue through 2022.
Traditionally, commercial real estate has served as a hindrance against inflation, stock traders have shown an interest in portfolio diversification through real estate, and monetary policy supports economic growth.
We think investors who move swiftly and exercise rigorous due diligence will be rewarded. In addition, it may be helpful to prepare in advance. Here is a look at the trends below.
According to Zillow, home prices have risen 19.5% in 2021 and are expected to rise another 11% in 2022, despite higher mortgage rates. This overheated market is driving young families out of the market since they prefer a single-family residence.
As everyone knew, the interest and inflation rates had to rise eventually. Over the past 15 years, we have been living in historically low-interest rates, slow economic growth, and low inflation. However, there were no indications that the situation would change now.
The latest Census Bureau statistics indicate that large metropolitan areas are losing their housing market share to smaller spaces. Data from the Census Bureau’s most recent report suggests that 811,000 newly constructed houses were sold in the United States in December 2021.