2021 was a crazy market – Buying was a multiple offer frenzy for almost every home, sellers are getting $50k+ over their asking price, inventory was and still is at record lows. So what’s in store for 2022?
Last week Inman ( a Real Estate news company) asked it readers to share their top predictions for 2022. Here’s what you told us you see in your crystal ball:
- I predict inventory will get even tighter. Only people with the strongest motivations will sell because of how hard it is to buy. Many people have low rates, which will further make it a difficult decision to move.
- I think those who do good business will continue to do good business, and “part-timers” are going to have a tough time gaining traction.
- Buyer agent and seller agent commissions will be uncoupled at the legislative level.
- Will slow down and return to 2018-2019 market condition, become a buyer’s market.
- Inventory will remain low, but start to pick up in the spring, following more traditional seasonal trends. As a result, prices will continue to appreciate, but at a lesser rate than we’ve experienced the past year.
- Interest rates will rise close to, if not over 4 percent, by the end of the year; home prices will drop; and we will see the start of a global recession.
- Price appreciation will slow to 4-8 percent for 2022, and we’ll see a flat market the following year.
- The market will moderate and seasonality will return across most markets. Demand remains strong as rents continue to increase, and as such at today’s current mortgage rates, even with the price appreciation we have seen this past year, it’s still cheaper (and far more lucrative) to own versus rent. Home sales will continue to increase in the 5 percent range nationally, and prices will continue to rise, albeit at a more normalized levels (3-5 percent).
- All said … remember the market is hyperlocal, and certain markets will be tied to local economics. Job and wage growth locally will drive higher performing markets and vice-versa.
Here is my 2 cents worth:
- Canada is a safe place in this world of craziness
- The West Coast is where everyone wants to be and Vancouver Island is the jewel
- The pandemic has made people re-think how they want to spend their lives
- Record numbers of people are moving to Vancouver Island
Low inventory + increased demand = continued increases in prices and don’t forget to add in competition for every listing. If you are ready to buy, it’s all about paying top dollar and meeting the sellers dates.
