Ravi Punia - REALTOR®

Fraser Valley Specialist


2022 Fraser Valley Real Estate Forecast

I am not generally one to believe in or make predictions.  Those who use crystal balls to look into the future typically end up eating glass.  Still, I am going to stick my neck out and make some broad predictions of how I think that the Fraser Valley Real Estate market will evolve in 2022.

It would be an understatement to say that the housing market in Surrey, Langley, Mission, Abbotsford and Chilliwack were hot in 2021.  The annual price gains across property types (houses, townhomes and condos) was off the charts.

And I personally believe that the conditions that created such a hot market in the Valley in 2021, will continue to lead us into 2022.

In my opinion, here is a summary of how I think the residential market will evolve in the Fraser Valley in 2022:

  • limited supply - it is difficult to know if more inventory of homes listed for sale will come online this year.  If there is a continuing low level of active listings, then I would expect there to be upward pressure on prices, as supply cannot meet the high level of demand out there

  • mortgage rates - borrowing costs remain incredibly low and cheap in an historical context.  Nobody can predict interest rate moves, but if mortgage rates stay low, then that will continue to support high demand from prospective buyers.  Low rates also encourage investors to borrow cheaply to buy investment property.  Let's see if the Bank of Canada actually raises interest rates in 2022...

  • buyer fatigue - price gains have been breathtaking and swiftly on the move upwards over the past 18 months or so.  However, realistically, there has to be a price ceiling at which buyer fatigue sets in and affordability is not possible for a high percentage of buyers.  Will 2022 be the year we see this?

  • work from home - The wild card in any market forecast is how COVID evolves in 2022.  If the current omicron variant is managed effectively and there are no further variants of major concern, then the pandemic may begin to fade away.  This may reduce the inclincation of people to nest and seek out more housing space in the suburbs.  Perhaps the Fraser Valley housing market will see some heat come off if workers are asked back to work or the office, in the urban core.  Suddenly, long commutes could make people rethink how far from work they want to live.  The nature of work itself is a variable worth watching closely, in terms of how it affects peoples' choice of housing location.

It will be interesting to see how the residential market in Surrey, North Delta, Abbotsford, Langley and Chilliwack take shape in 2022.  I wouldn't be surprised if the market heat dials back a bit and we see a plateuing of prices.  But time will tell.

*This blog communication is not intended to cause or induce breach of an existing agency agreement.  Views are my own and do not reflect those of any organizations that I may be associated with.

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