The 2022 Forecast

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The 2022 Forecast

Another hot year for housing

Posted on 05/01/2022

The 2022 Forecast
Another hot year for housing
The shock of going into a pandemic may have disrupted the housing market in 2020 for a few months, but there was no disruption in 2021. Demand surged despite COVID’s winter wave, summer delta wave, and the current omicron wave.
• Active Inventory – the year will begin with fewer homes on the market than usual It will be 39% less than the start to 2021, the prior record low. With very few available homes to purchase, housing will be extremely hot from January 1. The theme for 2022 will be the same as 2021, not enough homes for buyers to purchase.
• Demand – Buyer demand will be extremely strong from the start of the year through the Summer Market. With tremendous buyer competition, buyers may be willing to stretch above the asking price. Demand will be at its strongest, and most appreciation will occur from January through July, and then will downshift during the Autumn and Holiday Markets.
• Housing Cycle - the housing market will follow a normal housing cycle. The strongest demand coupled with plenty of fresh inventory will occur during the Spring Market. This will be followed by slightly less demand and a continued new supply of homes in the Summer Market. From there, demand will drop further along with fewer homes entering the fray in the Autumn Market. Finally, all the distractions of the Holiday Market will be punctuated with the lowest demand of the year and few homeowners opting to sell.
• Luxury Market – luxury housing will continue to be exceptionally hot, yet sales will drop slightly from 2021’s record year.
The bottom line: 2022 will continue where housing in 2021 left off, INSANELY HOT. Once again, the market will heavily favour sellers and buyers will have to be their patient in their search for the dream property.