Anticipating the Market in 2022


As it does each year, the real estate market offered buyers and sellers a little bit of everything in 2021. Wondering what to look for when anticipating the market in 2022? Ask Jarrod. He knows. And keep reading to find out what we expect to happen with real estate this year.

Another Record Year

The Jarrod Peterson Real Estate Group of Edina Realty had another record year in 2021. Jarrod Peterson, Lynn Chheang, Jonathan Brenny, and their support staff sold enough property to rank in the Top .5 percent in the nation (out of 1.6 million licensed realtors) for the 12th year in a row.

Last year was a challenging one that saw disappearing inventory and slow construction builds that tested the patience of first-time homebuyers as well as seasoned homeowners looking for a change. The persisting pandemic continued to create housing changes for renters, homeowners, and investors. More buyers wanted lakefront and properties with large yards and recreation space for features such as pools or sports courts. Buyers were quick to cash in on the lowest interest rates recorded in the past 42 years and the largest pool of buyers is strong in the marketplace – the millennials.

The Jarrod Peterson Real Estate team was able to serve repeat clients and work with many new clients who trusted us and our services. We thank you all for an outstanding 2021.

What Will 2022 Bring? More of the Same

So, what will 2022 bring? Experts like the Jarrod Peterson Real Estate Group and other national professionals expect more of the same. Anticipate a very robust real estate market with limited supply of inventory and high buyer demand.

Spring Real Estate Market Begins February 20

For more than 15 years, our team has led the industry in predicting the kickoff to the very busy spring market. This year, that special date is February 20. The spring Parade of Homes℠ will follow a few short weeks later, starting March 12. If you want to see the spring real estate market trends from the past five years, reference the most recent annual report available for FREE on our website.

“We are already busy meeting with many sellers who are ready to take advantage of the early spring market,” said Jonathan Brenny, a real estate consultant for the Jarrod Peterson Real Estate Group. “At these meetings, we really deliver on our promise by listening to the needs of the seller and informing them of their various options for timing, staging, prepping, and getting the most money out of their sale.”

Recommendation: Meet with a member of the Jarrod Peterson Real Estate Group now to prepare and take advantage of this spring market.

The Seller’s Market Will Prevail

We have been here for the past four years and that won’t change in 2022. Low inventory will continue and buyers who understand the process know this means homes will go fast, so they need to bid quickly and aggressively. Lynn Chheang, a consultant on the Jarrod Peterson Real Estate Group, predicts we will see more multiple offers this year. “The winter season continued with multiple offers, and the spring and summer markets in 2022 will have them as well.”

Recommendation: Work with an expert listing agent who prices and presents your home to gain multiple offers.

More New Construction Will Be Built

According to Danielle Hale at, we will see more new construction in 2022. So long as builders can get the land and the labor and supplies needed, they will build. Home builders understand the housing shortage and are ready to meet the demand. Expect to see more new construction available in Q2 and Q3 of 2022.

The Suburbs Will Continue to Be Hot Locations

Across the nation, there have been higher price appreciation in the suburban versus urban areas of the 10 largest metro areas. According to Dr. Ken Johnson, Associate Dean of Graduate Programs with the College of Business at Florida Atlantic University, the San Jose, Boise City, Charlotte, and Austin areas are hot tech markets and will be very accelerated markets for the suburbs.

Locally, you can continue to see the hot markets in Eden Prairie, Woodbury, and Maple Grove, where the Jarrod Peterson Real Estate Group has been named Favorite Realtor 14 times by consumers and various media publications. In addition, for more pricing affordability you will see further buyer reach to areas such as Waconia and the upper northwest metro of Albertville and Otsego as well as Hudson, Wisconsin.

Recommendation to homebuyers: Consider further-outlying metro areas for housing affordability and more choices.

Mortgage Rates Will Rise but Remain Low

In 2022, mortgage rates are expected rise throughout the year and stop at around 3.7 percent This is based on the experts at Fannie Mae, Freddie Mac, the Mortgage Bankers Association, and the National Association of Realtors®. Every increase in mortgage rates decreases a buyer’s purchasing power. As home prices rise, housing affordability becomes more challenging, especially for first-time homebuyers.

Recommendation for first-time homebuyers: Don’t wait! Get your home in the first half of the year.

Prices Will Continue to Rise

The equation for supply and demand is driving up prices and will continue to do so. First-time homebuyers will need to ensure they are qualified and ready to compete for the entry level price. Young millennials are soaking up property at a record pace. In 2021, first-time homebuyers accounted for 33 percent of all purchases. Moreover, 31 percent of all buyers have a person aged 18 or younger living with them at home, and there are more single females and non-married couples buying homes, so their specific housing needs will reflect that. Sharry Schmid, President of Edina Realty, is expecting a 6 percent growth in local housing appreciation.

Rent Rates Will Continue to Rise

The rental market is showing no signs of slowing down. Look around and you can see apartment homes being built in every major city. In fact, multi-unit housing accounts for approximately 36 percent of all current commercial projects, according to Todd Richardson, General Deputy for the Housing and Urban Development. This boom is fueled by housing demand, and there is no slowdown in sight for the next few years. As a result, rent rates are at an all-time high across the nation.

Recommendation: Meet with a qualified loan officer who can show you how much money you can save by owning a home rather than renting.

COVID-19 Housing Trends Will Continue

In 2021, the Jarrod Peterson Real Estate Group continued to support the guidelines set by the Centers for Disease Control and Prevention to ensure the safety of their clients and guests viewing homes. Hand sanitizer and protective gloves were put in homes, and we created limited showing windows to help control foot traffic. Technology also played a role. Technology through 3D Matterport allowed for virtual showings, and buyers purchased homes sight unseen or virtually seen. The Jarrod Peterson Real Estate Group sold six homes to buyers who never stepped foot in the home prior to purchase.

So, What Are Your Next Steps?

To ensure you are ready for the fast-moving market that begins February 20, you want to get a professional, accredited, and award-winning realtor into your property as soon as possible. The realtor will assess your current price points and help determine what improvements may be needed to make the home the competitive offering that buyers want to see. Contact our team to get the ball rolling!

Not every real estate team is as adept at anticipating the market and housing trends like the Jarrod Peterson Real Estate Group. Our combined 34 years of experience affords a wealth of expertise that benefits your home buying or selling journey. To learn more about these and other forecasted trends, contact us today for a private consultation.