Canadian Housing Market Outlook 2022 - What is New and Exciting in Canadian Real Estate?
The Canadian housing market has been a constant topic in headlines and online. While everyone expected the COVID-19 pandemic to cause home prices and sales to plummet, the market managed to surprise everyone.
In May 2020, the market began to rise, with high demand and prices carrying through 2021. These record-breaking rates made 2021 into one of the hottest years in Canadian real estate. However, with a new year, comes new trends, so here is a look at what to expect in the Canadian Housing Market for 2022.
However, before we dive into the Canadian Housing Market, click the link below to book a free strategy call to discuss getting the best available financing no matter what happens in the market.
Prices Continue to Rise in the Canadian Housing Market
According to the RE/MAX 2022 Canadian Housing Market Outlook, housing prices in Canada are expected to continue rising nationwide. It is estimated that across the country, residential sales prices are set to rise 9.2 per cent. As well, 97 per cent of regions are expected to remain seller’s markets in 2022 as prices continue to climb.
Affordability Remains a Key Concern
Buying a home has become noticeably harder to afford in the Canadian housing market over the last few years. During the 2021 federal election, affordability was a major concern across all parties. With Ontario preparing for its provincial election in June, rising prices are set to continue to be a major point of conversation. And the cause of this affordability crisis? Low supply.
Over the last few years, the demand for housing has increased dramatically and this is not set to end in 2022. By 2023, an estimated 1.2 million people are expected to immigrate to Canada, all of which will need somewhere to live. However, there are no major increased in listings or large-scale home constructions anticipated this year, resulting in greater pressure on the market.
There have been a few possible solutions proposed such as
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A National Housing Strategy
In a coordinated effort between all levels of government, a strategy could be implemented to increase the number of available homes.
Incentivizing Developers
Developers could be encouraged to build more affordable, family-sized homes through tax rebates and a simplified process for building applications and approvals.
Incentivizing Homeowners to Move
By encouraging homeowners to move through tax rebates and benefits, the overall number of homes on the market can increase.
Interest Rates Expected to Rise
It is believed that in April, interest rates will begin rising. This comes after a series of rate cuts in March 2020 by the Bank of Canada, because of the pandemic and its impact on the economy. However, this year it is expect that rates will rise by one per cent, so buyers are recommended to try to lock in their rates now. Although, despite the rising rates, sales and prices are expected to remain mostly unaffected due to the current demand on residential property.
Virtual Transactions Are Here to Stay
Buying and selling homes online was more than a convenience to help the industry survive lockdowns. It was a taste at a more convenient way of doing business that clients aren’t likely to surrender. Between virtual tours, digital paperwork and the wide array of listings available online, virtual transactions are expected to stay.
One trend that is certainly timeless is the importance of getting pre-approved on your mortgages. Getting approved by a lender who has experience in the properties you’re looking for is the first step to a stress-free homebuying experience. If you’re ready to get started, visit lendcity.ca and get set up with a pre-approval with a lender who is right for you. Alternatively, click the link below to book a free strategy call to discuss how you can invest in the Canadian housing market today.