Real Estate Predictions 2022
Posted Jan 16th 2022
The real estate market has been very hot these past few years, and many people wonder about the trends in 2022. Both buyers and sellers want to know what to expect, and while it’s hard to provide concrete answers, there are many predictions that are being made.
The past few years have seen record prices when it comes to property sales because of strong buyer demand, and it does not seem like this aspect is going to change. This kind of demand will likely continue to outpace supply in every market across the country. Despite a global pandemic, the housing market in Canada continues to remain very strong. This will continue to be the case as Canadians want to improve their living situation and have the funds for such upgrades because they have been limited from being able to spend their money elsewhere.
The effects of the pandemic continue to linger, and restrictions are still in place, meaning people cannot spend their money on entertainment or travel. For many, this has resulted in growing savings, which is being directed towards a larger and newer place to live. The real estate market has been very busy already, and the housing market will continue to bloom come spring.
2022 will continue to see shortages in homes available for sale or rent, which is a problem prospective buyers will likely face. The supply of homes that are available in the real estate market cannot meet the demands of buyers, so inventory will continue to be a problem even as new homes are being built. Construction companies cannot work fast enough to build homes for such growing demand because there is a shortage of material and labour and slower regulatory processes as a result of the pandemic. Increased cost of materials and supply chain issues are making it very hard for developers to complete new projects, so it’s not likely that our housing shortage crisis will be resolved.
Higher mortgage rates are another prediction that is being made as the Bank of Canada is expected to increase its lending rate later this year. This would result in higher interest rates and higher mortgage rates as well. A rise in borrowing costs seems inevitable at this point, and this will put an end to the current seller’s market as rising interest rates will slow down house price appreciation. It’s important to note that these higher borrowing costs will follow historically low rates, so the effects of this increase may not be felt right away.
A nationwide inventory shortage and affordability will continue to be problematic this coming year, but a reputable real estate agent will help you navigate through this challenging market. The Baird Team will work hard to help you find your dream home, and we will show you properties that you are interested in. We have access to the homes for sale in the Oshawa, Bowmanville, and Clarington areas, so contact us today for more information!