Real Estate Trends from 2021 & What to Expect in 2022

2021 was an exciting year for real estate around the country, particularly in Texas! As we close out the year, it’s important to review what’s happened over the last twelve months so that we can better prepare for what is to come in the new year. 2021 market and housing trends will give us a glimpse of what to expect in 2022. Whether you own your own home, broadly invest in real estate, are looking to move next year, or are simply interested in real estate news, this year-end report is for you.

2021 Real Estate Trends In Houston

As communities rallied together to unite during the ongoing pandemic, we’ve seen more of a focus on the quality of life in the home since so much time has been spent in the house.?

“... after people were stuck in their homes for so long during the pandemic, they started to think more about how they live because they were more focused on their quality of life. People working remotely began thinking about whether they wanted a home office. Families wanted a dedicated place for their kids to do schoolwork, to be close to a park, and to have a backyard.”?

- Douglas Elliman CEO, Jacob Sudhoff

Pair this focus on the home with low interest rates and people are flocking from rentals and condos to purchase their first (or second!) single family home.

This has resulted in 2021 boasting a strong real estate market position in the Houston area. 31.4% of listings have closed above listing price, and the average days on the market...only 26!

According to the Houston Association of Realtors (HAR), here are some additional interesting real estate statistics from this year:?

• Total dollar volume rose 9.9 percent to $3.8 billion;
• The single-family average price increased 13.1 percent to $377,631;?
• The single-family median price rose 14.7 percent to $305,000;??
• Single-family homes months of inventory registered a 1.8-months supply, down from 2.3 months year-over-year and below the national inventory of 2.4 months;
• On a year-to-date basis, single-family homes sales are running 12.9 percent ahead of 2020’s record pace and 21.6 percent ahead of 2019.
• Townhome/condominium sales rose 7.6 percent with the average price up 12.6 percent to $247,846 and the median price up 23.0 percent to $219,000;
• Single-family home rentals fell 3.4 percent with the average rent up 9.7 percent to $2,092;?
• Townhome/condominium leases fell 1.3 percent with the average rent up 7.3 percent to $1,712.

2022 Real Estate Forecast In Texas

Courtesy of Zillow

The data doesn’t lie - now is a great time to buy in Houston! Here’s a quick review of data uncovered by Norada Real Estate Investments.

Houston has a track record of being one of the best long-term real estate investments in the U.S. Since Sep 2011, the Houston home values have appreciated by nearly 91.2% — Zillow Home Value Index.

The Zillow Home Value Forecast (ZHVF) is the one-year forecast of the Zillow Home Values Index (ZHVI). ZHVF is created using all homes, mid-tier cut of ZHVI and is available both raw and smoothed and seasonally adjusted.?

• Houston-The Woodlands-Sugar Land Metro home values have gone up 16.8% over the past year and the latest forecast is that they will rise 12.3% in the next twelve months.
• Houston home values have gone up 16.5% (current = $231,326) over the past year and will continue to rise at a similar pace due to the tight supply of housing.
• Harris County home values have gone up 16.7% (current = $243,286) over the past year and will continue to rise over the next twelve months from now.

?It’s expected that the real estate market will continue in an upward trend throughout 2022, making your investment in real estate secure.

?What are your home plans for 2022? If you are considering investing in real estate, downsizing, or relocating, I would love to help you find the perfect fit. As a Concierge Real Estate agent, I’m available 24/7 and always go the extra mile. Whether you are buying or selling, I take care of everything behind the scenes so you never have to leave work or change your schedule. Send me a direct message or contact me via the information below, and let’s connect!