Biggest questions in real estate winter 2022

The Biggest Questions Clients Are Asking This Holiday Season (And FREE Slides to Answer Them)

‘Tis the season for friendly gatherings, and you know what that means. Everyone and their aunt Susan are going to be asking you questions about the real estate market.

The fact of the matter is, there’s a lot of speculation about what’s happening in housing right now, and everyone’s got an opinion on it.

It’s your job to be prepared for that inevitable table talk to earn the trust of your sphere and provide expert insights. That way when you’re at a New Years’ shindig and someone asks a question, you don’t drop the ball during the ball drop.

So, sit back, sip some hot chocolate, and check out the top questions you’ll need to be prepared to answer this holiday season.

Is the Market Going to Crash?

Rumors of a “housing crash” have been murmured for years. But is there actually meat behind those murmurs or are they just clickbait?

The truth is, while most news outlets feed off the doom and gloom of housing crash headlines, you can feed them a different story: the facts.

Yes, the escalation of home appreciation leaves many to wonder if this is a bubble that’s going to burst. But the truth is, the housing market looks very different from the infamous events that led to 2008.

For instance:

Rest assured, your holiday guests can be confident that it is very much still a good time to buy or sell a home. And if they’re searching for proof with their figgy pudding, these slides will help show them the truth behind those headlines.

Will There be a Wave of Foreclosures as Forbearance Ends?

There’s no sugarcoating it. The pandemic was hard on a lot of Americans, leaving many jobless and without a choice but to put their mortgages in forbearance.

And as forbearance comes to a close, many are wondering: is a wave of foreclosures on the horizon?

The answer you can tell your clients is a sound “no.”

Here’s why according to experts:

  • There are fewer homeowners in trouble this time
  • Most of the mortgages in forbearance have enough equity to sell, rather than foreclose, on their homes
  • The current low inventory market can absorb listings – it needs them

Also, the probable number of foreclosures coming out of the forbearance program is nowhere near the number of foreclosures that impacted the housing crash 15 years ago. To give some perspective, it’s actually estimated to be less than one-third of any of the three years prior to the pandemic.

Is the Real Estate Market Going to Last?

As the saying goes: what goes up must come down, right?

In the last year and a half, we’ve seen what could be the hottest real estate market of our lifetime. But we can all agree, or hope, that the factors leading up to that market won’t be repeating themselves anytime soon.

While mortgage rates rise and home appreciation begins to slow, we’re still seeing strong buyer demand. Plus, a recent study showed we may see a surge in inventory coming to market this winter, it doesn’t look like that heat is going to cool off with the temperatures.

What we can expect to see is more choice for buyers, as homes for sale rise and we inch closer to closing the inventory gap.

Looking for backup? Get our latest graphs and charts so you can not only tell, but show, your sphere what top experts project.

With Prices so High, Are Homes Still Affordable?

The average home value appreciated almost 20% nationwide between 2020 and 2021. Let that sink in a minute.

And with mortgage rates on the rise, many people are wondering: is it still affordable to buy a home?

The answer is: yes.

Let’s breakdown why:

  • Despite escalating home prices, mortgage rates are still low
  • Home prices will continue to appreciate, just at a slower pace next year
  • Inventory is expected to rise, taking the edge off of the supply and demand issue that led to the price growth we saw in the last year

While the days of sub-3% mortgage rates may be gone, today’s buyers can remain confident in today’s affordability. However, be sure to tell them to not wait too long. As mortgage rates rise and home prices continue to appreciate, waiting to make a move will mean only one thing: paying more.

What Will Happen with the 2022 Market?

If we’ve learned anything in the past couple of years, it’s that we can’t predict the future.

We can, however, do our best to project it.

While industry experts don’t expect the 2022 housing market to be as crazy as 2020 or 2021, one reason is that they anticipate inventory levels to increase, slowly closing the gap that drove up prices and made the market so extremely competitive.

Looking for more information to back up your answers? Check out our full 2022 housing market forecast.

Bottom Line

As friends, family and loved ones gather this holiday season for the first time in years, we can begin to see life return to a state of normalcy we weren’t sure we’d ever get back to.

And when you’re the real estate agent in your family or friends group, you can expect to get a question or ten about the market.

In order to stay the market expert in your circle, you need to be able to provide relevant and educated responses that are backed by facts.

At the end of it all, what may seem like small talk at a holiday party could mean a big return come the new year.

To get some visuals to back up your answers, we’ve put together our top slides that cover all the questions we covered.

Download them to your phone so you have them ready the next time an uncle, cousin, friend, neighbor, or random party guest asks one of these questions.