RE/MAX Canada predicts that the real estate market for 2022 will experience an increase of 9.2% in housing prices nationwide. Toronto, ON and Kelowna, BC are expected to have steady growth in real estate activity, therefore increasing the housing supply shortage which will continue to increase sale prices throughout the entire country.
“Based on feedback from our brokers and agents, the inter-provincial relocation trend that we began to see in the summer of 2020 still remains very strong and is expected to continue into 2022,” says Christopher Alexander, President, RE/MAX Canada. “Less-dense cities and neighbourhoods offer buyers the prospect of greater affordability, along with liveability factors such as more space. In order for these regions to retain these appealing qualities and their relative market balance, housing supply needs to be added. Without more homes and in the face of rising demand, there’s potential for conditions in these regions to shift further.”
Housing Market According to Canadians
49% of Canadians still believe that the real estate market is a great investment, despite the COVID-19 pandemic. 49% are also confident that the market will remain steady next year. This survey consisted of 59% homeowners and 34% non-homeowners.
Real Estate Market Outlook: Ontario
The housing market activity throughout Ontario is expected to remain steady in 2022. The estimated growth in Ottawa is 5%. Since it is a larger city, immigration will have an effect on the supply levels and therefore the pricing. It is expected to remain a seller’s market with the average sale price estimated to be $679,915.
2022 National Trends
The majority of Canadians stated that the rising house prices did not affect their decision to purchase last year and 62% of Canadians currently own a home. This breaks down further to 70% of Canadians over the age of 35 and 42% aged 18-34. Of these, 8% plan to sell or move-up in 2022. 43% of Canadians are interested in purchasing a home that is eco-friendly. This number is even higher for millennials, being 53%.
2021 Year in Review
Throughout the past year, 59% of Canadians have considered renovations for the return on investment. 21% considered purchasing recreational properties since they were priced out of their original market. Though it continues to be a seller’s market, we hope that buyers will not continue to get priced out of the market in the coming year.