What Will Our Market Look Like This Year?

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What’s going to happen in 2022? I’m coming to you from the largest real estate convention in North America. Not only do I sell real estate, but I also coach agents across Canada and the U.S. At the event, we had three intense days of training, and one of the topics we covered was what’s going to happen in 2022. Let’s go through some of the points quickly:

1. 2021 had a backlog of buyers. In 2022, many of those backlog buyers have already bought and settled in. We may not have that big pandemic purchasing surge that we had in the spring, summer, and fall.

2. It will be hard to find good listings. Inventory remains at an all-time low, and we expect that trend to continue this year.

3. Rates are going up. In the U.S., they have forecasted three rate increases by the end of 2023. We can expect to follow suit with that here in Canada as well. Rising rates will make it more challenging for buyers, especially first-time buyers. That’ll have a trickle-down effect throughout the market because everything starts with those first-time buyers purchasing a home.

If it’s more difficult and expensive for buyers, we may see prices flatten. However, if inventory remains low, those prices may stay high. Expect price increases, but they may not be as intense as we saw in 2021.

4. Some listings will sell, but others won’t. We didn’t see this as much in 2021, but with all the coming difficulties for buyers, listings that aren’t priced correctly won’t sell. We might see expired, terminated, and canceled listings this year.

If you have any questions about these points or real estate in general, feel free to call or email me. I’d be more than happy to help.