More market trends to watch in 2022

Ilyce Glink and Samuel J. Tamkin

A previous column covered several real estate trends that buyers, sellers and investors should be aware of as we move into 2022, including that iBuyers are evolving and interest rates are rising, which means that millennials and Gen Z may find it cost-prohibitive to buy their first homes.

These came from some interesting conversations Ilyce had with some of the leading real estate experts and industry observers at the recent National Association of Real Estate Editors (NAREE) conference.

Here are three additional real estate trends we’re seeing start to blossom:

Trend 4: Cash-out refis are back.

According to CoreLogic, a leading real estate analytics company, homeowners with mortgages saw their equity increase by more than 31% in the third quarter. The Homeowner Equity Report showed “a collective equity gain of over $3.2 trillion, and an average gain of $56,700 per borrower, since the third quarter of 2020.”

No wonder cash-out refinancing became a hot commodity in 2021. Black Knight, a leading provider of technology, data and analytics solutions, reported that tappable equity surged $254 billion to an all-time high of $9.4 trillion. Their latest “Mortgage Monitor” report says cash-out refinances pulled the highest “quarterly volume of equity in 14 years.”

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