11/10/2021
Ask me any questions on the forecast for next year!
We’re excited to share Virginia’s 2022 Economic + Housing Market Forecast, which takes a look at what’s ahead for the commonwealth.
Overall, the forecasts show the fact that our economy is still being driven by COVID. By the end of 2022, it is expected that job totals and the statewide unemployment rate will be back close to pre-pandemic levels.
Total Jobs in Virginia: In 2022, they’ve forecast 2% more jobs will be added than in 2021. The pace of job growth will accelerate next year, and total employment is expected to hit pre-pandemic levels by the end of 2022.
Unemployment: Virginia’s unemployment rate is expected to improve in 2022, falling to 3% by the end of the year, half a percentage point lower than 2021.
Home Sales: Projections are for a total of about 148,600 home sales statewide in 2021, which is up 6.2% from 2020. They are forecasting that sales activity will be down by just about a tenth of a percent in 2022.
Home Prices: While they predict the 2021 median home price in Virginia to increase by 9.2% over 2020, the rate of price growth will slow in 2022, with prices up by about 4.1%.
New Housing Permits: They are forecasting that a total of about 37,000 new housing units will be built in Virginia in 2021, up 10.3% compared to 2020. We predict a modest 0.5% rise in 2022, reflecting longer-term constraints to new housing construction.
Mortgage Rates: It is expected that the 30-year fixed-rate mortgage rate will be 3.1% in December of 2021 and will rise to 4.0% by the end of 2022.
