Learn the 6 sets of hot real estate statistics from 2021 that will drive your sales in the new year.
Real estate statistics show that the housing market is dynamic and always changing. Every city, state, and metropolitan area is unique in terms of its own real estate trends. Yet many of the widespread trends of 2021 will shape the market in 2022 for most of us.
Understanding the common market trends can help you position yourself for a strong 2022. So in this post, we’ll share the top 6 sets of real estate statistics from 2021 that will help you do just that.
Alright, let’s dive in!
Top 6 Sets of Hot Real Estate Statistics
Let’s explore the top 6 sets of statistics from 2021 that will drive your sales for the new year and help you better navigate the 2022 real estate market:
1. Real Estate Statistics Show Rising Home Prices
The most dramatic set of real statistics for 2021 were those that showed sharply rising home prices:
- 2021 home prices will end a stunning 19.5% higher than those of 2020, once the numbers for 2021 are finalized, according to Zillow.
- This amazing rise is confirmed by the most recent House Price Index. In fact, the Federal Housing Finance Agency reported that home prices were up over 19% in July 2021 compared to the year before. And in one month alone, between June and July, prices rose 1.4%.
- Homes in the Western and Mountain states show the most dramatic increases. Values in these states increased by a shocking 25.6%.
- Home values skyrocketed fueled by extremely strong buyer demand, low inventory, and historically low mortgage rates.
- As we head into 2022, the National Association of Realtors expects that home prices will continue on an upward trajectory, although at a slower pace than in 2021.
- In 2022, home affordability likely will continue to be an issue for many potential owners.
2. Statistics Show the Low Inventory of Homes for Sale
Most regional markets experienced a housing shortage in 2021 – in particular for homes at entry and mid-level price ranges.
These historically low inventory levels played a significant role in driving up prices:
Low inventory is a definite advantage for homeowners who choose to sell their homes, as they benefit from eager buyers and rising prices.
However, sellers still must exercise caution. Real estate statistics demonstrate that accurate pricing and reasonable expectations are essential for optimal sales.
Despite the expected uptick in new listings this year, lingering supply chain issues, and labor shortages are expected to continue.
And even with the frenzied pace of new home construction, houses aren’t being built fast enough to meet demand, and home prices will continue rising as a result.
3. Increased Buyer Demand and Competition
During the red hot real estate market of 2021, multiple offers on a house were common.
In fact, it wasn’t uncommon for a home in good condition and properly priced to receive 10 or more offers.
Here are statistics that support the increased buyer demand and competition:
- 2021 saw just over half of all buyers faced a bidding war.
- At least 70% of buyers faced a bidding war in May 2021 – a significant increase from the 52% rate seen a year prior.
- According to the Mortgage Bankers Association, mortgage credit availability is increasing with a 3.9% increase between July and August of 2021.
This points to loosening lending standards, making it easier to get a mortgage loan, therefore resulting in more buyers and offers.
This trend looks as if it will moderate in 2022. The bidding war rate appears to be slowing as we enter 2022.
4. Real Estate Statistics Show the Importance of Home Staging
2021 real estate statistics showed the vital importance of home staging to maximize a home’s sale.
Buyers scroll through dozens, even hundreds, of online listings in search of one that speaks to them.
And buyers may not notice your listing if they can’t put the home’s space into full perspective, which these data support:
- For instance, did you know that 28% of home seller’s agents say that they stage all homes before listing?
- According to the National Association of Realtors (NAR) 2021 Profile of Home Staging, 82% of buyer’s agents say staging makes it easier for buyers to visualize a property as their future home.
- 97% of home buyers used the internet to search for homes and expect to see quality photos.
- And 85% of staged homes sold for 5% to 23% percent over list price when being staged.
5. Virtual Staging Attracts Home Buyers’ Attention
Enhancing listing photos with virtual staging ensures that buyers take notice.
Virtual staging transforms a space into an inviting home, fully digitally furnished according to the design preferences of today’s buyers.
It helps sell homes by providing every room with the look and style you’d find in a magazine, which, in turn, will help sell a property for more money.
To better illustrate this, here’s a sample of virtual staging statistics:
- Vacant homes sell for an average of $11,306 less and spend six more days on market compared to staged and virtually staged homes.
- Virtual staging can reduce the cost of staging by up to 97%.
- More than 7 in 10 agents find videos, virtual staging, and virtual tours more important since the start of the COVID-19 pandemic.
The virtual staging process can take an empty, cluttered, or drab interior and show buyers how fantastic it could look after decorating or renovating.
All you need to do is sign up with PhotoUp, upload the photos of your vacant rooms, and PhotoUp’s expert photo editors will return your staged images in 24 hours.
Best of all, you choose the design and decorative details that you want to be put into each of the rooms.
6. 3D Virtual Tours Sell Houses
For buyers, their dream home is just a click away and the search has never been easier.
Listing agents must ensure that buyers can fully and accurately visualize the home online.
Compelling online marketing is now essential, including high-quality photos and including 3D virtual tours.
In fact, 2 separate studies reveal that listings featuring a 3D Virtual Tour tend to sell for a higher price and spend less time on the market.
Buyers love 3D virtual tours because they allow them to preview just about every room from every angle.
Real estate statistics clearly show that a growing number of buyers will only view a home if they like how it looks online.
Therefore, having a 3D virtual tour of the home is increasingly essential to driving traffic to your listings.
Are You Ready for 2022?
So, are you ready for 2022 yet?
Before you answer that question, let us take a closer look at Zillow’s home value growth statistics and price predictions:
- Zillow’s 2022 forecast calls for 11% growth in home values. That’s less than the 19.5% rate projected for 2021.
- Although an expected 11% growth may be less than the pace of 2021, it would still be among the strongest yearly growth Zillow has tracked.
- Price growth is expected to slow, yet sales of existing homes in 2022 are still predicted to total 6.35 million.
- When compared to an estimated 6.12 million for 2021, not only is it an increase, but it would be the highest number of home sales in any year since 2006.
Despite possible moderation in the market, overall, the trends for 2022 point toward a strong year.
This year’s trends will include rising home prices, rents, and moderate interest rates.
Low inventories and the current supply chain obstacles in home construction will likely still be the case through 2022.
Now that you know how 2021 played out, you can better prepare for 2022. Still, the housing market is always changing.
We hope this post gave you insights into the top 6 sets of hot real estate statistics that will shape 2022. If you enjoyed reading this post, you may also want to check out the following resources: