With the wild real estate situation of the past few years, everyone interested in buying property is continuously checking up on the market to see what it’s doing. From Plano, TX, real estate to New York high-rises, there are a lot of future homeowners hoping that the market levels out a bit more before they buy. So, as we dive deeper into 2022, what is the expected outcome of real estate, particularly for houses for sale in Plano, TX? From construction troubles to online reliability, the world of real estate is changing things up this year. But fear not, the team at Patton International has the breakdown for you.

Like the years before, prices for houses for sale in Plano, TX, are increasing. The Plano, TX, real estate market is hitting a fever pitch. Collin County (which houses parts of Plano) real estate prices were higher in April 2022 than in April 2021 at closing, homebuyers paid on average $550,000 for homes, a 32.7% spike. At the same time, fewer homes were on the market this year than last year.

 

So, what does that look like for Plano buyers? Many buyers have to move quickly and overpay to snag the houses they want. Cash offers have become a lot more common in 2022 because of all this competition.

 

Understandably, the Plano, TX, real estate situation started as a seller’s market this year, just like everywhere else in the country. However, as we move further into 2022, that’s beginning to change.

 

To cope with the housing market, which is very inaccessible for lower-income and younger buyers, the Federal Reserve has unilaterally increased interest rates. While the national average mortgage interest hovered around 2% to 3% for the past few years, in just the first four months of 2022, they’ve jumped to a national average of 5.25%. For now, the Plano, TX, real estate mortgage interest rates are not quite as bad. However, these hikes are still enough to dissuade the average buyer, meaning that the seller’s market isn’t as lucrative as it used to be. If that persists, we will see a significant change in how sellers approach the market.

Even though the prices for Plano, TX, real estate have skyrocketed, the amount of interested parties is beginning to wane, and a lot of that has to do with the rising interest rates and the inflated prices.

 

Many real estate experts expect the market to cool off in the coming months in current conditions. That doesn’t mean that anyone will see houses back down to 2018 prices, but it does mean homes for sale in Plano, TX, will stop rising so drastically in price. Also, some sellers might even be forced to lower their prices, which might finally lead to an end of the 2022 norm of paying over the asking price for almost any offer to be approved.

 

Another concern with the 2022 housing market is that new construction won’t be as easy to create. With all the materials shortages throughout 2019-21, there are already a lot of obstacles in home-building. Materials are suddenly costly and, at times, difficult to get ahold of. While there’s been improvement in materials availability, that doesn’t mean construction is cheaper now. Instead, labor costs are expected to rise monthly through 2023, and maybe beyond. Yes, Plano, TX, real estate might be changing in desirability, but a scarcity of new construction might cause different kinds of demands and constrictions on the housing market. Anyone looking for a new home might have to pay a lot more than expected.

The real estate market is also joining the "tech and mortar" craze, a new term coined to describe the marriage of online and physical retail sales. On smaller scales, this phenomenon covers popular digital markets like online stores and DoorDash food pick-up, but on larger scales, it’s Carvana. As “tech and mortar” becomes more popular, so does the possibility of people buying their homes entirely online. With each innovation, buying houses for sale in Plano, TX, is getting more and more digital, which means buyers and sellers alike will have to adapt to this change.

 

Real estate sites have always been popular as places to begin your homebuying search. However, as people become more interested in minimizing their in-person interactions, it’s become even more viable to conduct an entire house purchase online. From a tour to a mortgage loan, every step can be negotiated through virtual tours, video calls, and DocuSign. You just have to be persistent and creative, and it can work out.

 

This process also means that more people than ever can buy a house from anywhere, so there’s even more competition on the market. Someone from New York who wants to flip a house for a big profit could take your dream fixer-upper right out from under you.

 

This is why it’s more important than ever to work with an experienced local agent like the team at Patton International. Though there’s nothing wrong with starting your search online, engaging the services of a pro early on in the process will take a lot of the stress off your shoulders and ensure everything goes smoothly.

Ready to buy or sell in the Plano area? Reach out to the trusted agents at Patton International for guidance. The boutique agency’s Realtors are ready and waiting to help guide you on your homebuying journey.