Toronto saw the biggest house price hikes in 2021, but things look a little different for 2022.
Toronto’s real estate market has made buying homes affordable for millennials over the past 12 months, and sadly, most experts predict that home prices will continue to rise over the next year.
According to the LePage Royal Market Survey Forecast, Canadian home values are expected to rise sharply again in 2022, but at a slower pace than in 2021.
The GTA predicts that the total price (based on a weighted model with average prices that include all apartment types) will increase 11% year-on-year to $ 1,256,500 in the fourth quarter of 2022.
The median price of single-family homes is expected to rise 10% to $ 1,564,200 by the end of 2022, while the median condominium price is expected to rise 12% to $ 763,800.
The Ontario real estate market is expected to remain stable in 2022, according to RE / MAX Canadian Real Estate Outlook Toronto. RE / MAX brokers predict Muskoka will receive one of the highest selling price increases at 20%.
Meanwhile, Mississauga will see the largest GTA increase at 14%, compared to the predicted 10% increase for Toronto.
So when should they start looking for buyers again? Some experts say the market will stay hot at the start of the year because there aren’t enough properties for sale to meet demand and people will want to take advantage of low mortgage rates.
“The offer will be a critical move at the start of the new year, especially as January and February will be warmer than usual with buyers looking to get a mortgage rate ahead of next year’s forecast.” This was stated by Lauren Haw, CEO of Zoocasa, in a report by Zoocasa 2022 Housing Market Forecast.
Some experts say the market will cool down over the summer.
“Things will slow down until July, especially in August in Toronto,” Nasma Ali, founder, and broker of One Group, told Yahoo Finance Canada. “All the people who wanted to relocate because of COVID, so this is the final batch, so to speak. “
Nobody has a crystal ball, though, and it’s hard to say what will happen in 2022.
“Many factors are entering the market in 2022 that we have seen in the past that create great urgency for buyers to enter the market,” says Haw.
“Things on the table for the next year are things like trying to fix a mortgage rate before rates go up, choosing a home to withstand the toughest constraints of the Omicron pandemic, or competing in a very weak supply market with a real estate landscape. strong growth on prices.