What to Expect — Brooklyn’s Real Estate Trends in 2022
Jan 12, 2022 brooklyn homeowners,brooklyn real estate,brooklyn real estate agent,brooklyn realty,Brooklyn Renters,Brooklyn Sellers Agent,first time home buyers,real estate trends
If you’re thinking about moving this year, it’s essential that you understand the upcoming market and its effects on all parties involved — especially after our hot end of 2021. Buyers and renters will feel the effect of increasing demand, and sellers will see sale prices rise but not yet to their pre-covid amounts. Here’s a quick run-through of what you can potentially expect:
Buying in Brooklyn:
Buying a home this year will be a little better than the last. The downsides — market is still hot, prices are still up, and inventory is still low. However, the bidding wars will go down a little bit, making it a touch easier to snag the home you love most when it comes time to put in your offers.
We’re expecting to see a rise in listings around February — a pattern that tends to take place every year.
Renters’ Rejoice:
Renters, you’re in luck — at least at the beginning of the year. Things are going to get easier in our community this year. COVID support has ended and landlords are working to renew contracts at a higher price. This may drive many toward owning their own home, leaving an unusual amount of empty apartments in our area over the winter.
And for you — unclosed deals might lead to an easier time landing a home and a little bit of a rent discount, too.
As the year goes on, rent prices are predicted to climb, slowly approaching the all-time high they hit before the pandemic. Thankfully, we’re not expected to quite get there in 2022.
A couple important notes to keep in mind:
- When the weather warms up, renters could see more demand. Consider signing on before that time comes.
- The Emergency Rental Assistance Program will continue to be available to individuals and families who are struggling to make ends meet.
Selling Your Current Space:
2022 is just about prime time to sell. There are still more buyers than homes available on our market, and prices are still high enough to make most homeowners a decent return on investment Some products haven’t quite hit their pre pandemic high, however.
Omicron is keeping some buyers out of the market at this time with the uncertainty of what the strain will bring. It may be wise to wait and list after peak illness season if you can, but we aren’t expecting any major issues while listing earlier, either.
Some of the most sought-after spaces will be those that include:
- Recent renovations
- Outdoor space
Renting out in BK
The consensus is a bit mixed for landlords in 2022. The value of apartments skyrocketed once COVID calmed down, but the market will most likely settle down – at least for the beginning of the year. Plus, since interest rates are still low, many would-be renters might consider buying their own place, instead.
Even still, there’s no data to suggest that the rental market will dissipate like it did in 2020 – even with the Omicron variant sweeping through NYC. In fact, some projections suggest rent prices will rise later this year to meet a potential new-found demand. Though, again, not like it did in 2021. More like a leveling out will occur, which should slow the marketplace volatility.
This is just a brief rundown of what we expect of real estate trends in 2022. If you want to dive deeper into the details, check out the full report from our friends at Brownstoner. And don’t be afraid to get in touch! We’re here to help you through anything this year’s market brings.