During the last 12 months, home prices skyrocketed, homes would go off the market almost as quickly as they went on, and low interest rates coupled with high consumer demand made last year a unique time in real estate.
While homebuyers are still facing somewhat of an uphill battle when it comes to inventory and competition, the next 12 months shouldn’t feel completely like 2021, and real estate agents need to be prepared to guide them on their way.
What to Expect
Redfin is reshaping its mortgage business in 2022.
The Seattle-based company announced on Jan. 11, that it has agreed to acquire Bay Equity Home Loans, a national, full-service mortgage lender, in a cash and stock transaction worth $135 million.
According to a press release and public filing, the deal, which is expected to close in the second quarter of 2022, will help increase Redfin’s financing capabilities nationally.
Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about 10 times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage. At the national level, a homeowner who purchased a single-family existing home 10 years ago would have gained $225,000 in home equity if the home were sold at the median sales price of $363,100 in 2021 Q3.