Canada home prices to rise by 9.2 per cent in 2022, ongoing housing supply shortage is likely to continue

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TORONTO, Dec. 1, 2021- Canada expects average residential prices to rise by 9.2 per cent in 2022, with inter-provincial migration continuing to be a key driver of housing activity in many regions

This news comes on the heels of RE/MAX’s 2022 Canadian Housing Market Outlook Report. The ongoing housing supply shortage is likely to continue, putting upward pressure on prices. As a result of these factors, it is estimated the country will see over a 9 per cent increase in average residential sales prices nationwide.

Despite COVID19’s impact to daily life, Canadians surveyed feel confident in the real estate market. According to a Leger survey 49 per cent of Canadians (59 per cent of homeowners vs. 34 per cent non-homeowners which included renters, those not looking buy, and those currently looking to purchase), believe real estate will remain one of their best investment options in 2022. Additionally, 49 per cent of Canadians are confident the market will remain steady next year.

Additional findings from the 2022 Canada Housing Market Outlook Report:

  • Less than half of Canadians trust their agent to advise them during the current real estate landscape (43 per cent)
  • 23 per cent of Canadians now have a greater desire to build their own home or buy pre-construction
  • 26 per cent of Canadians have the desire to purchase a home while mortgage rates remain low
  • 62 per cent of Canadians currently own a home. This is higher among those ages 35+ (70 per cent) compared with Millennials, ages 18-34 (42 per cent)
  • The majority of Canadians (72 per cent) not buy or sell a home in the past year.

Western Canada
The Calgary and Edmonton markets shifted from balanced conditions in 2020 to seller’s markets in 2021, which brokers and agents in the region expect to continue into 2022. This is attributed to heightened demand prompted by the inter-provincial migration trend that took place throughout 2021, which saw many homebuyers from Ontario and British Columbia driving demand high, while supply remained low.

In addition to an increase in out-of-province buyers flocking to Edmonton, the region has also welcomed investors who found themselves priced out of other markets. RBC’s provincial outlook for Alberta puts this province ahead of all others in terms of economic growth in 2022, which should bode well for homebuyers and investors alike 2022.

Ontario
According to the RE/MAX broker network in Ontario, market activity across the province is anticipated to remain steady in 2022, with continued average price growth, although at widely varying degrees. RE/MAX brokers anticipate average sale price increases in smaller markets such as North Bay (four per cent); Sudbury (five per cent); Thunder Bay (10 per cent); Collingwood/Georgian Bay (10 per cent); and Muskoka (20 per cent), 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 (five per cent); Durham (seven per cent); Brampton (eight per cent); Toronto (10 per cent); Mississauga (14 per cent).

Atlantic Canada
All of Atlantic Canada’s regions analyzed are currently seller’s markets, with potential for average sale prices to increase between five to 20 per cent in 2022, according to RE/MAX brokers and agents. Larger urban centres including Moncton, Fredericton, Saint John, Halifax, Charlottetown and St. John’s have all experienced an influx of out-of-province buyers, especially from Ontario, moving to the region in search of greater affordability and liveability.

The full data table can be viewed here

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