Canada has seen so many unprecedented changes within the last couple of years that you would think we’d be unphased, but the real estate market continues to surprise and shock. Not only has it grown an incredible amount since the beginning of 2020, but it’s also expected to keep growing in 2022.
Here’s everything you need to know:
Higher Demand All-Around
There’s a higher demand for houses in almost every portion of Canada. Much of this is due to panic from COVID-19 reminding people of the importance of having a personal space they can call their own.
As a result, more people are desperate to have a space they can own that will give them room to spread out and possibly have outdoor space, resulting in far more people buying property than the real estate market is used to.
Inter-Provincial Migration
Canadians are no longer staying in one space; instead, many live a nomadic life. Moving to where work is, or where house prices are cheapest, has resulted in areas that usually have a calm housing market to have to face buyer numbers, unlike anything they’ve dealt with before.
Although cities are the areas where people are often fleeing from, they’re still seeing price and buyer increases because of all of the fresh real estate that’s available.
Ongoing Supply Shortages
Supply shortages have plagued Canada since the beginning of 2020 when the pandemic hit and halted materials production. It’s never fully gotten back on its feet, and so although Canada’s built more houses than ever before, it hasn’t hit the target that it needed to cover the demand in the market.
Supply shortages have also slowed down house flipping and repairs, which are investments that would usually quickly get completed so that a home could get back on the market.
Sellers’ Market Prevailing
Almost all of Canada is currently in a sellers’ market. This means that bidding wars are more likely to break out, and buyers have less power over their prices and the perks that come with a home.
The longer an area is in a sellers’ market, the higher the house prices will go because the demand is far higher than the supply. This has made it, so homes for sale in Toronto are hitting records in price that they haven’t seen before.
So, What Are the Numbers?
Sales prices are projected to rise between five to twenty percent in 2022. Beyond this, the number of sales is set to continue skyrocketing as well.
This means that homes purchased now will likely rise in price enough that homeowners could make a sizable profit by holding onto their homes throughout the new year. There’s no bubble burst in sight yet.
Real Estate Is an Investment over 50% of Canadians See as Safe in 2022
Although there’s no 100% sure prediction of the next year, most sources agree that real estate will grow in 2022. Moreover, even the average Canadian agrees that real estate is going big places still, so it’s never too late to invest.
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