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2021 Housing Market Concludes With Price Growths, What To Expect In 2022

The winter housing market in the US started heating up again in December, potentially leading to a hot market in the first quarter of 2022. More buyers have become motivated to hop on real estate transactions due to looming mortgage rate increases as well. 

Listing prices in December returned to double-digits similar to what the market looked like during the spring/summer of 2021 when real estate was seeing some of its most competitive transactions since the start of the pandemic. 

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According to data from Realtor.com’s chief economist Danielle Hale, “December data offered a fitting finish to the frenzy of the past year. Annual listing price growth hit double-digits again nationwide and in many of the hottest markets, after four months of single-digit pace this fall.”

“Despite buyer challenges like rising prices, limited inventory and fast-paced sales, real estate activity maintained a brisk pace throughout 2021 as factors like low mortgage rates enabled home shoppers to persist. With rate hikes now on the horizon, buyers may be trying to get ahead of higher monthly housing costs, in turn driving up competition and prices,” Hale explained.

“Our 2022 forecast anticipates affordability challenges this year, but also that trends like rising incomes and workplace flexibility could offer some Americans a better shot at finding a home.”

“For those who weren’t successful in 2021, we expect better luck in the coming months as more sellers plan to enter the market – and if December’s listings are an indication, with high asking prices in mind,” she explained. 

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 In 2021 the demand for homes was much higher than the supply, which drove prices even higher and will likely continue to drive the prices up in 2022. Realtor.com is also predicting that these price increases will cause a lot of affordability issues in the new year. The average price for a home in the US is now 25% higher than it was in 2019.

Within the past two years the average price for a typical 2,000 square foot single-family home increased by 18.6% consecutively. More than 25% of the US’s largest markets saw double-digit home price gains in 2021. 

While the winter is typically a cooling off period for the market, the past two months have seen historically low listing times, as buyer activity continues to outmatch the limited inventory available throughout the nation. 

When compared to the national pace of the market, time on the market was lower in the US’s 50 largest metropolitans with an average of 48 days on the market, seven days less than last years average and 25 days less than 2019’s average. 

Inventory is expected to increase to ideally meet the demand of buyers in America. December data did show more new sellers entered the market when compared to last year’s numbers, a majority of these listings, however, are in cities. 

Summer Vacation

The Most Popular Vacations People Are Booking For 2022 

As more individuals receive their Covid-19 vaccinations throughout the world, many are planning their first big trips for when the world really begins to return to a sense of normalcy. 2022 is already seeing an influx in flight bookings under the assumption that by that point, more of the world will be vaccinated and Covid will be more obsolete. 

Here’s a list of some of the most popular destinations individuals are booking trips to for next year:

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Napa Valley, California: Many individuals are looking to book trips that will give them an experience, not just a simple resort vacation. After struggling throughout the pandemic and one of the deadliest wildfire seasons of the past decade, California in general is ready to open its doors for tourists again. Napa Valley is specifically offering a ton of different wine tasting resort packages that will give individuals the opportunity to plan their perfect vacation in wine country. By 2022, the Four Season Napa Valley will also be open and running, marking the first time a Four Seasons winery will be in Northern California. 

Paterson, South Africa: Speaking of experiences, the safari expedition’s offered at the Kruger National Park in South Africa is unlike any other safari experience out there. The Shamwari Private Game Reserve, in Paterson, South Africa, offers two daily game drives which allow individuals to digitally and safely search for wildlife native to the area. A majority of the wild animals in the game have left the actual reservation area due to colonization and poaching, however, this new experience will allow the reserve to rebuild what was lost while continuing to educate the world about the magic of wildlife. 

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Loire Valley, France: The Hotel Château du Grand Lucé is an hour away from Paris and has been open to the public since 2019, however, the property has existed since 1760. This French chateau that formerly housed royalty can now become your own personal vacation palace while you endure unforgettable experiences like biking through the village and picnicking in the flower-filled exotic gardens. 

Perez Zeledon, Costa Rica: For those looking for more of the beachside resort vibe without all the crowds, look no further than Perez Zeldon, Costa Rica. This 150 acre landscape includes a coffee farm, tribal village, lush rainforest, and plenty of white sandy beaches to rest and recharge on. 

Sardinia, Italy: This is one of the most popular beach destinations in Italy to date. Sardinia is known for its white sand beaches and captivating turquoise waters. There are a multitude of hotel options that offer complete serenity and privacy. All restaurants and shops are also within a walking distance depending on where you stay. 

Kyoto, Japan: Kyoto has become one of the most iconic Asian city destinations for tourists. They’re known for their luxury hotels that are bustling with Japanese culture. Visitors can hike to take a dip in some hot springs, enjoy all the local cuisine, and take in all of the culture with a multitude of historical sights to see.