2021 Year in One Minute and 2022 Things to watch
1. Low Inventory
Inventory is down in each "mini" real estate segment. Limiting buyer options.
· Single-family listings are down 29%.
· Townhomes listings are down 55%.
· Condo listings are down 51%.
2. Strong Demand - Total Volume of Sales
· Strong The total volume is approaching $6 -Billion in sales for the entire year. This is 1.5 times the 2020 total volume of sales and 1.86 times the 5 year average These figures are not factoring in off-market sales as well as presale condo sales.
3. Sale Price increases
Low supply and strong demand have increased prices.
. Benchmark prices for single-family homes are now around $975k. That is up 32% from last year.
· Townhomes are up 29%
· Condos are up 28.5%
2022 Prediction
Truth be told, I can't predict 2022 this far out, I believe in constantly monitoring the situations as everything evolves, here are the top 3 things that I will be watching in 2022 on a weekly basis. 1. Inflation
· The inflation rate at 4.7% normally Canada’s target is set at 2-3% every year. Watch this rate to have an idea of how Canada's economy is performing.
· The United States has hit an inflation rate of 6.8%
2. Home Prices compared with Money Printed
· 23% of ALL Canadian dollars has been printed into existence over the past 18 months. During this time national housing prices have increased 34%.
· Kelowna Home prices have increased 32% this year alone and the average price for single-family homes has increased 44% since 2019. Interpret this how you want but prices have increased as more money is out in the economy. Unlike a lot of other goods, houses you don't need to full amount of funds to purchase, all you need is a 5-25% deposit. People are leveraging and spending additional money earned and putting it into real estate.
3. Interest Rate increases
· The rate increases are one aspect to watch. Interest rates continue to be at a historical low.
· OSFI restrictions make buying tougher (watch for restrictions being put in place by the Government of Canada to make it tougher for investors to buy secondary properties).
Happy New Year! Wishing you and your family a year of health, happiness, and no more Covid. Let me know if there is ever anything I can do for you.