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Housing was beginning to recover from a 7 year itch since 2016, and just when it was chilling in the green, the pandemic played spoilsport.
H2, 2021 Changed That
As the second wave faded, consumer sentiment touched record highs and as a result, demand for housing saw an uptick.
Will Q1, 2022 be more of the same? What can you expect if you're hoping to buy, sell, or invest in real estate this month? Here's a quick look:
🔖 Home Prices Are Going Up: The biggest takeaway from 2021 is that home prices are on the rise -- and perhaps at a much quicker pace than analysts has expected. With a resurgent economy, an uptick in hiring and good performance from many core sectors, the demand for new homes is getting stronger than ever. And as construction costs (prices of cement, steel, tiles, fittings etc.) have risen significantly, an upward revision of between 10-30% in home prices is inevitable.
🔖 FOMO Will Boost Sales: While home prices are expected to increase steadily throughout 2022, many potential homebuyers may try to 'catch the bus' now before prices rise further. The fear of missing out -- or FOMO -- on low rates and the potential loss in delaying the purchase may supercharge the housing market in Q1, 2022.
🔖 Rents Are Going Up: It's not just buying a home that's getting more expensive. Rents are on the rise lately, too. With Omicron behaving, the work force is slowly getting back to the office, while the student economy is making a strong comeback, resulting in the demand for more rentals, translating into higher rents this quarter.