Here we are in the final month of 2021, and like every one of them this year has gone by quickly. What has probably been the biggest waypoint for it for the Real Estate Market was one that is far away in the rear view mirror now, and specifically the market ‘cool down’ of the early spring that didn’t last nearly as long as some thought it might or being a precursor to any sort of overall market correction. In fact what has been seen since then is a resumption of market activity to the tune of some of the hottest real estate market conditions ever seen in Canada.
As always, this is a source of much discussion and introspection on the part of anyone who works in the real estate industry or has an interest in it – specifically both homebuyers and home sellers. For the seller there’s everything to like about the hotter market, and the exact opposite will be true for the majority of homebuyers and especially those are looking to buy their first home from a realtor who is very knowledgeable about how to submit the most competitive bid on a home while still understanding their client’s budgetary concerns and how much they’ll be able to afford with BOC interest rates set to rise in Canada.
New clients can be hard to come by, and especially with so many people making career shifts into real estate all the time. That’s a part of why our online real estate lead generation system at Real Estate Leads is a good choice for anyone who wants to get something of a leg up on the competition and build their client base with a little more speed. That’s likely the majority of them.
But back to topic, the Canadian Housing Market Outlook Report for 2022 has come out as it always does as the current year draws to a close, and there are some notable findings in it that give us an idea of what’s to come as we move into a new year next month.
Upward Pressure on Housing Prices Will Continue
All sources are expecting steady price growth across the Canadian Real Estate Market in 2022, and along with this the current supply shortage for homes will continue too creating upward pressure on housing prices for the foreseeable future. The consensus seems to be that there will be a 9.2% increase in average residential sale prices across the country, and that is up roughly 2% from what was foreseen at this same time last year as 2021 was on the horizon.
The report provides something a reflection of homebuyer confidence too. Just slightly less than half (49%) of respondents feel that Canadian real estate will remain one of their best investment options in 2022 and a similar 49% of respondents have confidence in the Canadian real estate market remaining steady through next year.
It is encouraging to see that so many are feeling confident in the housing market in 2022 and view Canadian real estate as a solid investment, and this will be true for homebuyers and those who will be putting homes up for sale when working with a dedicated real estate agent.
There has very much been a trend of homebuyers searching for larger properties with greater affordability, which is likely to continue pushing demand and prices up in 2022 and – most notably – heating markets in smaller areas of the country where this equation is possible but where such upward pressure has not been seen before. This trend has notably increased demand for single-family detached homes and for condos in some regions too, which may continue into 2022.
Both coasts of the country have cities that continue to be seller’s markets, or are becoming that way for the first time as is true for some parts of Atlantic Canada, including larger urban centres like Moncton, Fredericton, Saint John, Halifax, Charlottetown and St. John’s all experiencing an influx of out-of-province buyers taking a newfound interest in housing in these Maritime cities.
For Ontario, we’re seeing how investors now make up the largest segment of home buyers in Ontario, with 25% of homes being snapped up by investors speculating that prices will only keep rising. This is leading for some civic official to call for a speculation tax like the ones that are in place elsewhere in the country.
Additional Findings
- The percentage of Canadians who currently own a home is 62, and ownership continues to be most common among those ages 35+ (70%) compared younger 18-34 cohort (42%)
- 2-in-5 Canadians are willing to rely on their agent to advise them on potential moves in the real estate market and making informed transactions
- 23% of Canadians have an increased desire to build their own home or buy one at pre-construction
- 26% of Canadians feel an impetus to purchase a home before BOC mortgage rates go up in 2022
- 72% of Canadians said rising home prices would not factor into purchasing decisions for 2021
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