Transitioning Back From Covid-19 And The Year Ahead
13 Dec 2021
Covid-19 turned the world upside down and we were forced to pivot and reinvent our ways of living and doing business. Now, almost 2 years later, we have a greater understanding of how to cope with the disease. Like with the aftermath of a storm, we are picking up the pieces and finding our way back to what we previously found comfortable and workable.
Here are five trends to watch for 2022 as they relate to the real estate market:
1) The feeding frenzy for buying homes has calmed. Whereas we were seeing 30 offers on entry level detached homes in the spring, we are now seeing up to 10. However prices remain high, as active listings remain low. Upward pressure on home prices is expected to continue through 2022.
2) Although, no one has a crystal ball, expect mortgage rates to climb gradually in 2022.
3) Due to teleworking. we saw and exodus to the suburbs during the pandemic. Many expected the condo market to crash. However, it remains strong meeting the needs of first time homebuyers, retirees, investors, and even students benefitting from some financial backing. Expect to see a continued demand for divided co-ownerships.
4) Living in the country seemed like a great idea at the time, however many people found out the hard way that country living wasn't for them. They are returning to the city excited to reacquaint themselves with restaurants, amenities and services that can't be beat by rural ideals. If you are looking for a recreational property, maybe wait another year for more city dwellers to vacate their country home.
5) Increased demand for rental units with the return to in-person learning and immigration; as well as an aging population looking to downsize. In spite of purpose built housing starts slated for development through 2023, the added demand will add pressure to this housing category. In addition, eventually the renters will want to become owners, so expect a continuous upward pressure on the housing market.
Wishing you health and prosperity for 2022.
