2022 - What can we expect in Real Estate?
By Jeff Lorenz
Our Team recently participated in 2 Forecasting seminars with the intention of learning what the economists are predicting for next year. One seminar was focused on the Edmonton Real Estate market and the other was for the Calgary Market. In both markets, 2021 far exceeded all expectations with significant year over year increases in Prices, Sales & Listings.
While both seminars were extremely detailed, the main highlights are what we’re including in this article. For anyone that is interested in digging deeper into economic variables that have been considered - please reach out and we’ll be happy to have a more in depth conversation.
The Edmonton and Calgary Boards are anticipating a price increase in 2022 of 3.1% & 4.5% respectively - for single family homes. Edmonton is projecting a decline in sales of 12.9% while Calgary is expecting to see a decline of 7.5%. Both boards are also expecting to see increases in prices for Row Housing and Apartments but to a lesser extent.
Additional predictions include an increase in Alberta’s GDP of approximately 4.7% - which will be less than the 5.9% experienced in 2021. We will see inflation soften once supply chain issues recover; however, we will also see interest rate increases anywhere from .75% to 2% this year.
As already mentioned, there were a number of factors considered including the impact of Covid, predictions relating to Oil & Gas and the impact on employment & immigration to name a few.
For anyone that is considering a move in Real Estate, it would be worth your time to have a more detailed conversation about how your goals can align w/ our predictions for this year. Please reach out and we’ll be happy to have a chat!