Real estate pros expect housing costs to continue to rise next year in Mississauga, Brampton, Oshawa, Oakville, Burlington
Published December 22, 2021 at 3:46 pm
One of Canada’s top real estate companies is projecting home prices to continue to skyrocket in 2021.
According to the Royal LePage Market Survey Forecast, the aggregate price of a home in Canada is set to rise 10.5 per cent year-over-year to $859,700 in 2022, with the median price of a single-family detached property and condominium projected to increase 11.0 per cent and 8.0 per cent to $918,000 and $594,000, respectively.
“The lack of housing supply in Canada is a very real issue, one that cannot be solved overnight,” said Phil Soper, president and CEO or Royal LePage.
“While some believe housing is now overvalued, signals point to a level of demand that will continue to outpace inventory, keeping prices rising on a steep upward trajectory. That said, I do expect to see price appreciation ease from the unhealthy levels that we have been grappling with over the last 18 months.”
Pent-up demand not addressed in 2021 is expected to continue through the normally quiet winter season and spill over into the spring market of 2022. In addition, the federal government’s plan to increase immigration levels will bring a surge of new demand, particularly in large urban centres.
In the Greater Toronto Area, including Mississauga, Brampton, Burlington, Oakville, Milton, Oshawa and Whitby, the aggregate price of a home in the fourth quarter of 2022 is forecast to increase 11 per cent to $1,256,500. During the same period, the median price of a single-family detached property is expected to rise 10 per cent to $1,564,200, while the median price of a condominium is forecast to increase 12 per cent to $763,800. The GTA is the only major region expected to see price appreciation in the condominium segment surpass detached homes in 2022.
“Condos in the region have rebounded with vigour, after taking a harder hit than any other major urban centre in the country at the onset of the pandemic,” said Cailey Heaps, who leads the Heaps Estrin Team, Royal LePage Real Estate Services Ltd.
“For a short period of time, prices dipped, and an onslaught of vacant units sent rental rates downward, but that trend was short-lived. Not only have condo prices rebounded, but competition is also heating up as entry-level buyers see them as an affordable way to get onto the real estate ladder.”
While the winter months translate to a seasonal slowdown in the real estate market in some cities across Canada, Toronto’s housing market remains active year-round.
“As we saw last year at this time, cold weather and the holiday season will do little to slow activity in Toronto. With tight competition and the looming threat of an interest rate hike in the first half of 2022, those who can transact now will not wait until spring, especially if they can lock in a lower mortgage rate,” said Heaps.insauga's Editorial Standards and Policies advertising