Canadian Real Estate Prices Expected to Rise 9.2% in 2022
Sunday Dec 12th, 2021
CANADIAN REAL ESTATE PRICES EXPECTED TO RISE 9.2% IN 2022: RE/MAX
December 1st, 2021
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, according to 53 % of RE/MAX brokers (20 out of 38).
- 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 in 2022.
- 97% of regions (37 out of 38) surveyed are likely to remain seller’s markets in 2022.
Toronto, ON and Kelowna, BC, December 1, 2021 – 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 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, RE/MAX Canada estimates a 9.2% increase in average residential sales prices across the country*.
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 (59% of homeowners vs. 34% non-homeowners which included renters, those not looking buy, and those currently looking to purchase). Additionally, 49% of respondents are confident the Canadian real estate market will remain steady next year.
2022 Regional Canadian Real Estate Insights
RE/MAX brokers and agents in Canada were asked to provide an analysis of their local market in 2021 and share their estimated outlook for 2022. Based on their insights, 97% of Canadian real estate markets are expected to favour sellers, impacted by limited housing supply and high demand.
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.
Regions such as Victoria, Nanaimo, Regina, and Kelowna also experienced an influx of buyers in search of larger properties and greater affordability, which is likely to continue pushing demand and prices up in 2022. This trend has notably increased demand for single-family detached homes and in some regions, condominiums as well, which may continue in 2022.
Despite some buyers choosing to move away from urban centres such as Vancouver/Greater Vancouver in favour of suburban areas within British Columbia, or leaving the province entirely, Vancouver/Greater Vancouver has remained a quality place to live. The region continues to draw interest from Canadian and international buyers, a trend that is likely to grow next year, in tandem with rising immigration. Vancouver/Greater Vancouver is expected to remain a seller’s market in 2022, providing inventory stays tight and current demand continues, according to a RE/MAX broker in Greater Vancouver Area.
Winnipeg is anticipated to continue to be a seller’s market in 2022. Young couples enjoying the freedom to work from home have been driving much of the demand in the region, especially for one- and two-story detached homes. The appeal of Winnipeg has had less to do with affordability, and more with lifestyle shifts such as hybrid working environments.
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 (4.0%); Sudbury (5.0%); 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 (5.0%); Durham (7.0%); Brampton (8.0%); 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 7.0% increase year-over-year ($986,085 in 2020 to $1,054,922 in 2021).
All of Atlantic Canada’s regions analyzed are currently seller’s markets, with potential for average sale prices to increase between 5% to 20% 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.
Due to this spike in demand, much of the region has experienced increasing competition, especially among single-family detached homes and condominiums in some cities. There’s a possibility that this may further be amplified as immigration continues to grow in the region.
According to RE/MAX brokers and agents in the region, new construction is anticipated to remain strong into 2022, although construction activity may be dampened by ongoing supply shortages and delays in permits related to the pandemic backlog.
Seller’s market conditions are expected to prevail across the region in 2022, with the exception of Charlottetown and Southern Nova Scotia, which may return more to a balanced state as activity gradually begins to decrease.
These factors have led to some of the highest price outlooks in the country, with Halifax and Moncton projecting estimated average residential sales price to increase by 16%, and 20% respectively.
Additional Findings From The 2022 Canadian Housing Market Outlook Report
- 2-in-5 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.
Lydia McNutt, Public Relations & Content Manager
Lydia McNutt is an award-winning writer, editor, and PR professional, who has spent the last 20 years of her career focussed on all thing’s real estate.
About The 2022 Housing Market Outlook Report
The 2022 RE/MAX Housing Market Outlook Report includes data and insights from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments. Regional summaries with additional broker insights can be found at REMAX.ca. The overall outlook is based on the average of all regions surveyed, weighted by the number of transaction in each region.
Note: 2020 average residential sale price numbers were full-year, 2021 were from January 2021 – October 31, 2022.
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,554 Canadians was completed between October 29-31, 2021, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90%. A probability sample of the same size would yield a margin of error of +/- 2.5%, 19 times out of 20.
Full Report at: https://blog.remax.ca/re-max-expects-canadian-real-estate-prices-to-rise-9-2-in-2022/#