2022 Canadian Housing Market Outlook Key Highlights

Canadian Real Estate Prices Expected to Rise 9.2% in 2022

• Confidence continues in Canadian real estate market, with the inter-provincial relocation trend likely to remain strong in 2022
• Migration between provinces expected to continue in 2022, potentially impacting local Canadian real estate conditions
• 49% of Canadians believe the housing market will remain steady in 2022 and view real estate as one of the best investment options over the next year
• Some of the highest outlooks are anticipated for Atlantic Canada, with Moncton and Halifax projecting average residential sales prices to increase by 20% and 16% respectively
• 97% of regions (37 out of 38) surveyed are likely to remain seller’s markets in 2022

RE/MAX is anticipating steady price growth across the Canadian real estate market in 2022, with inter-provincial migration continuing to be a key driver of housing activity in many regions, based on surveys of RE/MAX brokers and agents, as reflected in the Canadian real estate market in 2022. The ongoing housing supply shortage is likely to continue, putting upward pressure on prices. As a result of these factors, RE/MAX Canada estimates a 9.2% increase in average residential sales prices across the 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.”

Despite the global pandemic, many Canadians still feel confident in the real estate market. According to a Leger survey conducted on behalf of RE/MAX Canada, 49% of respondents believe Canadian real estate will remain one of their best investment options in 2022. Additionally, 49% of respondents are confident the Canadian real estate market will remain steady next year.

ONTARIO

Market activity across the province is anticipated to remain steady in 2022, with continued average price growth.

RE/MAX anticipates average sale price increases in smaller markets such as North Bay (4%); Sudbury (5%); Thunder Bay (10%); Collingwood/Georgian Bay (10%); and Muskoka (20%), where the move-over trend has remained strong.

Meanwhile, in larger markets within the province, there’s a possibility that more immigration could weigh on supply levels and prices, including Ottawa (5%); Durham (7%); Brampton (8%); Toronto (10%); Mississauga (14%).

When it comes to price appreciation year-over-year, there are a few regions that stood out in 2021 for their exponential increases across all property types, including Brampton, which rose from $869,107 in 2020 to $1,085,417 in 2021 (25%); Durham from $706,818 in 2020 to $914,48 in 2021 (29%); and London from $487,500 in 2020 to $633,700 in 2021 (30%).

In comparison, Toronto experienced a modest 7% increase year-over-year ($986,085 in 2020 to $1,054,922 in 2021).

Additional findings from the 2022 Canadian Housing Market Outlook Report

• Two-in-five Canadians trust their agent to advise them during the current real estate landscape (43%)
• 23% of Canadians now have a greater desire to build their own home or buy pre-construction
• 26% of Canadians have the desire to purchase a home while mortgage rates remain low
• 62% of Canadians currently own a home. This is higher among those ages 35+ (70% compared with Millennials, ages 18-34 (42%)
• The majority of Canadians (72%) said rising home prices did not impact their purchasing decisions in 2021.

Content Source Credit: remax.ca

Feelers from the market from our personal experience

Market is continuing to forge ahead with raging prices and multiple offer situations in both home and condo apartment categories. Contrary to the fear or anticipation of a real estate market correction, this does not seem to be slowing down buyer behaviour or motivation to buy right now. While there have also been talks of a possible increase in interest rates, as of now it is not an imminent threat to the market.

Looking to Buy a Resale or a Builder New Property in & around Mississauga? Contact Team Kalia!