Housing Market Predictions?
According to the 2022 Canadian Housing Market Outlook Report from RE/MAX, steady growth is anticipated across the Canadian real estate landscape into 2022. While Canadians continue to recognize the value and investment potential of their home, market challenges (such as rising prices and limited supply) maintain their impact on local markets.
It is estimated that Canada will witness an approximate 9.2% increase in average housing prices across the country as a result.
One of the key trends we see continue from 2021 into 2022 is inter-provincial migration occurring in many regions as a result of supply and affordability of homes across Canada. Individuals are also looking for larger homes with more space for growing families. While there is potential for the real estate conditions to continue to shift, 49% of respondents view Canadian real estate as a top investment option and believe the market will remain steady throughout 2022.
Below are some key regional forecasts from Moody’s Analytics and Real Property Solutions (RPS) for 2022:
British Columbia: Housing markets in BC are also overvalued, particularly in Vancouver and other metro areas. As a result, these areas will continue to have a downward pull on housing prices due to reduced affordability.
Alberta & Saskatchewan: Currently considered “undervalued” housing markets, they are likely to do better despite weaker economics as they have retained better affordability.
Manitoba: Lifestyle shifts, such as hybrid working environments and younger couples enjoying the freedom to work from home, predicts that Winnipeg will continue to be a seller's market through 2022 with high demand for one- and two-story detached homes.
Ontario: Smaller metro areas (Brantford, Kitchener, Kingston, London, Windsor and Ottawa) are expecting the strongest house price appreciation rates. With regards to The Greater Toronto Area, this region currently suffers from over evaluation. However, housing prices have shown less sensitivity to this based on historical data so they are likely to experience less downward pressure.
Quebec: This province presents important contrasts as Montreal is the only metro area in Quebec not in the correctly valued range (plus or minus 10%), and will experience a downward pull on housing prices due to reduced affordability.
Nova Scotia & New Brunswick: The highest home price appreciation is expected to occur in the metro areas of Moncton and Halifax.
Newfoundland & Labrador: Aside from the Prairies, this Atlantic province is expected to see housing price growth move at a faster rate.
If you are looking to buy, sell or simply review or renew your mortgage in 2022, please do not hesitate to reach out to me! I would be happy to review your situation with you and help you make the best decision for you and your family now, and into the future.