sno-king living Real Estate | January 2022
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2022 Real estate predictions At the end of each year, I review the details that made the current real estate market and then look ahead to predict what’s in store for the upcoming year. Below are market predictions for 2022 based on data that was available as of December 15, 2021.
2022 predictions
The year ahead is sure to bring more excitement and hope for a year less focused on Covid and restrictions. The year is sure to bring stabilization in many employment sectors and a return to a more normalized life. With that, here is what we may expect in 2022:
1 Housing Inventory – The 2021 summary
The big news for the real estate industry in 2021 was that while we were all dealing with COVID and the Delta variant, the housing market soared and buyers flocked to write offers. Investors sold high and bought low in more-rural locations. The real estate market hardly slowed down even during traditionally slower months. All in all, the market was red hot as expected in many markets and unexpected in other markets that are not usually traditionally as busy.
housing industry saw a record-setting inventory crisis in 2021. Inventory will continue to be a major struggle in many markets in 2022. With inventory so tight, many homeowners who want to sell but are concerned about finding a home to buy may decide to stay put in 2022. Overall, inventory will remain limited due to the change in the work from home environment which is putting further demand on housing needs for a work from home employee.
they will continue to struggle to get into the housing market. This will force many first-time homebuyers to opt for employment that allows them to work from home and move to a more affordable market. This problem will not be alleviated until we are able to bring more inventory into the market.
3 Housing Starts/New Con-
struction – The United States’ new construction shortage began in 2009 and by 2021, our country had accumulated a deficit of 5.2 million housing units. The U.S. needs 1.62 million units per year to keep up with demand for new construction (not including alleviating the deficit), the increase in population, and replacement of old structures. In 2021 the home building industry was not able to keep up with the demand and was further damaged by Continued on back
2 Affordable Housing – First-
time home buyers were not able to buy in many markets due to rapidly rising home prices and a competitive buyer pool. In 2022,
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