2022 Predictions, Market Report, & Compass News

  • 01/28/22

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

 

Hot off the Press: 



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

 


5 Spur Road, Edina

$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 Chilly Open

  • 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

 

David Spade - Comedy Live

  • Pantages Theatre - 710 Hennepin Ave, Minneapolis, MN
  • Sat, Jan 29, 9:30 PM – Sun, Jan 30, 12:00 AM

 

JP Saxe Concert

  • 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

Turnquist Spilseth Group

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