Real estate prices are expected to keep growing in Canada next year
According to the recent forecast from Re/Max, home prices will keep going up in Canada next year, inter-provincial migration will continue, and a restrained supply in certain areas will support prices growth.
National real estate prices are expected to rise by 9.2% on average in 2022, following an already strong year in terms of sales and price growth, Re/Max’s president believes.
“I’ve never seen more than 95% of markets being in seller’s market territory,” – he told CTV News. “That’s why we can’t overstate how strong the market was in Canada last year.”
In Alexander’s opinion, the pace will probably remain unchanged in 2022, with 36 of 38 markets across the country keeping their seller’s status.
One more tendency he expects to continue is inter-provincial migration caused by investors’ search for more affordable areas. The possibility of remote work during the COVID-19 pandemic has given certain homebuyers more flexibility to buy properties in different markets.
“Remote work has let people change their lives they way it was impossible before the pandemic,” – Alexander noted. “There are people who have moved to another province, but kept their previous jobs.”
In addition to it, the report points out that a lack of supply in areas with a strong demand caused by migration is the main factor pushing home prices higher.
Although housing prices are expected to keep growing, about half of Canadians still consider a home purchase to be a good investment option for 2022, the report says.
“I don’t think people are nervous about it,” – Alexander added. “We surveyed a lot of Canadians and more than half of them are sure the market will be as strong next year.”
The report also provides data and forecasts for different regions of Canada.
For instance, brokers in Ontario predict steady market activity and price growth in 2022. Several regions have faced sharp price increases in case of all housing types in 2021, e.g. Brampton (25%), Durham (29%) and London (30%). Meanwhile, Toronto reported only a 7% gain.
All regions of Atlantic Canada are in a seller’s territory, and the prices may go up by 5-20% next year.
The demand hike could be caused by homebuyers from Ontario moving to Moncton, Fredericton, Halifax, Charlottetown and St. John’s looking for more affordable options.
And while Charlottetown may cool down, home prices in Halifax and Moncton are expected to go up by 16% and 20%, respectively, the report says.