The industry giant Royal LePage report predicts that in 2022 "Seller’s market conditions continue as we move into the spring market, despite rising prices, further expected interest rate hikes and economic uncertainty".
By using Canada-wide statistics the report outlines predictions for the spring buying season and what may happen in the last six months of the year. Several areas of the report are worth highlighting:
While some properties were attracting fewer bids, listings in popular neighbourhoods that are priced appropriately are still commanding multiple offers and selling above the list price.
“Consumer confidence is being challenged as the lingering impact of the pandemic and worrisome geopolitical situation in Eastern Europe raises questions about the stickiness of inflation and the trajectory of interest rates. Yet, while there may be fewer bids on accurately priced properties, housing supply is so tight that multiple-offer scenarios remain the norm in most communities.”
In the first quarter of 2022, four cities in Ontario’s Golden Horseshoe region – Barrie, Cambridge, Kitchener-Waterloo and Oshawa – recorded median single-family detached home prices that crossed the million-dollar threshold for the first time, as Torontonians continue to search for affordable homes within a reasonable commuting distance while working partially or fully remotely.
Royal LePage is forecasting that the aggregate price of a home in Canada will increase 15.0 per cent in the fourth quarter of 2022, compared to the same quarter last year. The previous forecast, released in December, 2021, has been revised upward to reflect the continued strength of the market through the first quarter of the year.