What to Expect in 2022 With the U.S. Housing Market
According to (U.S. News & World Report), with a housing shortage in 2021, there has been a strong demand for housing in the U.S. that has been increasing. New home construction has slowed down due to labor shortages, supply chain issues, and regulatory practices, resulting in houses not being built fast enough to meet needs and home prices rising. For 2022, we can expect continued high demand and a rise in real estate transactions that may have a slight effect on real estate transactions.
U.S. Housing Market Potential Trends in 2022:
- Inventory will remain low
- Interest rates will increase
- High prices will put pressure on affordable housing
- Wage growth will provide stability for buyers
- The rental market will grow and be balanced out compared to the last two years
- When labor and supply issues die down enough is unclear for new construction.
Twin Cities Region Market
According to (Minneapolis Area Realtors), in the first week of 2022, market data has shown that mortgage rates were at their highest point since May 2020 in the Twin Cities region. This was more than half a percentage point higher than what it was in January 2021. Inventory has decreased while interest rates have continued to increase into the new year, which has had a small effect on buyer demand.
Recent Market Report For the Beginning of January:
- New Listings decreased 16.2% to 814
- Pending Sales decreased 19.1% to 541
- Inventory decreased 22.5% to 4,493
Industry & Market Updates
Check out the recent headlines about the heightened demand for real estate below.
- Existing-home sales rose in November, denoting three consecutive months of increases (NAR)
- The median existing-home price for all housing types in November was $353,900, up 13.9% from November 2020 (NAR)
- Over the past few months, lumber prices have nearly tripled (NAHBNow)
- The average rate of a 30-year fixed mortgage has risen to the highest level since May of 2020 – 3.22% (Freddie Mac)
Compass News
- Compass Expands to New Hampshire | (Compass welcomes 15 locally-renowned agents, representing more than $135 million in 2021 sales volume, to its Portsmouth office)
- Compass Agents Predict Low Inventory and Rising Prices to Drive Another Seller's Market for 2022 | (Compass' first ever internal survey polled over 460 Compass agents across the country on their 2022 real estate market forecasts).
- Read Compass Luxury Division’s 2021 Ultra-Luxury Report | (A year-end market snapshot of $10 million-plus sales nationwide, along with insights, trends, and lifestyles aligned from around the country).
Hot off the Press:
- Inman | (In 2022, Compass is all about playing 'the long game')
- Mansion Global | (U.S. Housing Supply to Remain a Major Challenge for Home Buyers in 2022)
CAPTURING COMPASS
Compass Minnesota:
26275 Sylvan Lake Road, Rogers
$699,000 | 9.27 Acres
Listed by: TSRE Group
105 Prairie Creek Road, Medina
$1,200,000 | 5 Bed | 4 Baths | 4,867 SqFt
Listed by: Mike Steadman
$2,695,000 | 6 Bed | 6 Baths | 10,470 SqFt
Listed by: McNamara Group
4030 Enchanted Lane, Minnetrista
$3,650,000 | 5 Bed | 5 Baths | 6,939 SqFt
Listed by: Brian Benson
Compass National:
5646 Dolphin Place La Jolla, CA
$18,885,000 | 3 Bed | 4 Baths | 2,400 SqFt
Listed by: Michelle Serafini
16229 Villarreal De Avila Tampa, FL
$5,999,000 | 10 Bed | 19 Baths | 28,363 SqFt
Listed by: Eric Dungy & Jon Fincher
2780 McLain Flats Road Aspen, CO
$17,500,000 | 7 Bed | 8 Baths | 10,437 SqFt
Listed by: Doug Leibinger
Local Events Happening in the Twin Cities Region
- Wayzata Bay, Lake Minnetonka
- February 10th, 11th & 12th
Ice Fishing on Lake Minnetonka
- Hotel Landing
- February 10th, 11:15 am - 8:00 pm
Lake Minnetonka Klondike Dog Derby
- Downtown Excelsior
- February 4th & February 5th
North American Pond Hockey Championship
- Maynards, Excelsior
- February 10th, 7:00 pm
- Pantages Theatre - 710 Hennepin Ave, Minneapolis, MN
- Sat, Jan 29, 9:30 PM – Sun, Jan 30, 12:00 AM
- Varsity Theater -1308 SE 4th St, Minneapolis, MN
- Sun, Feb 13, 7 – 10 PM
The Kid LAROI: End Of The World Tour
- The Fillmore Minneapolis - 525 N 5th St, Minneapolis, MN
- Wed, Feb 16, 5:30 PM