Real Estate Predictions for 2022
The last two years have impacted every aspect of the economy — and real estate is no exception. The good news is optimism is predicted to return in 2022 as part of some interesting trends.
Emphasis on Innovation
Not only is working from home looking to become permanent for many people, environmental concerns are growing, costs and competition for properties are both on the rise, and governance in the housing industry is becoming more important. All this is changing how real estate businesses are thinking about their investments — in particular, they are realizing that they need to become more innovative. We can expect more disruptions in the real estate industry and a greater reliance on using technology and data for decision making.
Top Markets in Canada
Vancouver is predicted to be the top market of 2022 — it has already held this position for two consecutive years. This is mainly due to a return to high levels of immigration, the large amount of capital available, and the city’s strong economy. All these make Vancouver appealing to investors and developers alike.
The second top market is Greater Toronto — for both industry (which is now recovering after suffering through several lockdowns) and housing. Other cities worth watching next year include Edmonton, Calgary, Saskatoon, Ottawa, Winnipeg, Montreal, and Quebec.
Greater Need for Affordable Housing
Buying has been strong throughout the pandemic, leading to a shortage of inventory and rising prices of single-family homes. This trend is expected to slow in 2022, although demand is likely to stay strong. However, it has already meant that homes are more expensive than they once were. On the flip side, condominiums have become more affordable. Unfortunately, some developers are reluctant to build more condos, since there’s no guarantee that prices will stay this way.
As a result, many developers are starting more multifamily housing projects. These will provide an affordable solution, particularly in the most expensive cities. However, there will still need to be input from the government to combat the shortage in affordable housing. This ties back to the prediction that there will be an increase in innovation in the real estate industry.
One of the biggest concerns for buyers will continue to be finding the best mortgage rates. Edmonton buyers can find more than just the best rates with Flare Mortgage Group. We also provide the best service, which includes pre-approval within one business day. Call us to start the process and get pre-approved today.