Top 10 Real Estate Predictions for 2022 by Windermere’s In-House Chief Economist
Windermere Economist Matthew Gardner announced his Top 10 Predictions for 2022, summarized here:
1. Home prices will continue to rise nationally (at around 6%) testing affordability levels, slowing in price growth from the previous year.
2. Big robust and early spring buying season ahead prompted by the “work from home” paradigm. Rise of COVID variants may result in many searching for new homes away from traditional workplaces.
3. Rise of the suburbs, blending back to going to the office with working from home, pushing prices up with a wave of out-of-towners impacting affordability.
4. Cost of construction should come down as a stimulus for building new homes for single family starts.
5. Zoning issues that limit development will become more of a focal point adding to housing supply to relieve inventory shortage.
6. Climate change will impact where buyers choose to live. Climate risk data is more available. Younger generations will be uber focused on where to live based on risk factors.
7. Urban markets will bounce back. Demand for living in cities will rise as city neighborhoods become more accessible to new residents. Where tech worker demand drops in the work from home culture, workers in biotech industry may be on the rise for city influx.
8. Resurgence in foreign investment! Some international buying activity with sight unseen purchases but, when travel restrictions ease, we are looking to see a surge of buyers.
9. First time buyers will be a bigger factor this year, renters will convert into being buyers.
10. “Forbearance will end and it is going to be okay!” Do not wait for a wave of cheap bank-owned homes coming to market, “I don’t see it happening!”
Wishing you happiness and success!
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