With housing prices hitting record highs last year and the market red hot, many people are wondering - what will the housing market do in 2022? None of us have a crystal ball to tell the future with certainty, but analysts and experts across the board are agreeing on one thing: Canadian home prices are expected to continue to rise.
There are a few major factors influencing the housing market right now. One factor that gets a lot of attention is that interest rates are expected to rise. Experts predict that the Bank of Canada will raise rates by one per cent by the end of the year. This has led some people to speculate about whether real estate prices will drop in 2022. While interest rates certainty impact the housing market, a one per cent interest hike is unlikely to be a significant factor on the number of sales or prices because of the current high level of demand versus supply.
Across the country, demand is out stripping supply and that doesn’t seem likely to change any time soon. Construction of new homes is hampered by labour shortages, supply chain issues and the rising costs of construction materials due to the COVID pandemic. With not enough homes available to meet the demand, prices go up. Demand is also driven by Canada’s key homebuying population growing at higher-than-usual rates, the country welcoming new permanent residents and more people looking to purchase investment properties.
Will 2022 be a buyers’ market? Or will 2022 be a good year to sell a house? No matter which side of the coin, the market will remain hot. And there are many ways that you as a realtor can prepare to help your clients during these unusual times.
Getting your name known, nourishing relationships and building a lasting reputation are key. One of the best ways to do this is by sending a regular newsletter to your network with thoughtful, relevant content. It’s not enough to just drop a line saying hi – providing value is the best way to position yourself as the expert and build a referral base. Include the latest news, data-driven reports and information tailored to your audience. Need help?
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