Home prices will rise in 2022, report says – .

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Home prices will rise in 2022, report says – .


TORONTO –

Housing prices in Canada are expected to rise steadily in 2022, with interprovincial migration continuing in many areas and a housing shortage in those areas driving costs up, according to Re / Max’s housing market outlook report released on Wednesday. .

Selling prices are expected to rise 9.2% on average across the country next year, the real estate company estimates. This would follow an already “sensational” year in terms of sales and price appreciation, said the president of Re / Max.

“In the history of our country, I have not known, certainly not during my tenure, that more than 95% of the markets are in the territory of the seller’s market,” he told CTVNews.ca during ‘a telephone interview. “We cannot therefore overstate the strength of the Canadian market in 2021.”

That momentum will likely continue into next year, Alexander says, with 36 of 38 markets across the country poised to maintain their seller status.

Another trend he suspects to continue is interprovincial migration, as investors seek more affordable places to settle. The ability to work from home during the COVID-19 pandemic has given some shoppers the ability to shop in different locations.

“Remote working has really allowed people to settle in a way that was not possible before the pandemic,” Alexander said. “We hear about some people who have moved to another province but are still working in the province they left. “

The report states that the shortage in high demand areas due to migration is a key factor in the rising cost of real estate.

Despite prices that look set to continue to rise, making home ownership more expensive for Canadians, the report says about half of the nation’s residents still view home buying as a good option. investment for next year.

“I don’t think people are nervous at all,” Alexander said of the real estate market. “We have surveyed many consumers and more than half are convinced that the market will remain strong for the next year. “

In addition to outlining industry trends, the report breaks things down region by region in Canada, offering forecasts and projections for different regions over the coming year.

In western Canada, Calgary and Edmonton have become sellers’ markets this year, a trend expected to continue through 2022. The report attributes this to increased demand from homebuyers migrating from Ontario and beyond. British Columbia while supply remained low.

Cities like Victoria, Nanaimo, and Kelowna in British Columbia, as well as Regina in Saskatchewan, have also apparently seen booms due to incoming shoppers looking for a more affordable price.

Winnipeg is seen as an outlier and it looks like it will remain a buyer’s market next year, the report says, apparently due to more remote work options in the area.

Ontario brokers forecast strong market activity and price growth in 2022, at least on average. Several regions have seen wild price appreciations across property types this year, including Brampton (25%), Durham (29%) and London (30%), while Toronto only saw an increase of 7%. %.

All parts of Atlantic Canada are currently sellers’ markets, according to the report, and could see selling prices rise by 5-20% next year.

The increase in demand appears to be attributable to out-of-province Ontario buyers moving to cities such as Moncton, Fredericton, Halifax, Charlottetown and St. John’s in search of a more affordable price.

While places like Charlottetown may calm down, selling prices in Halifax and Moncton are expected to rise 16% and 20%, respectively.

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