The infamous pandemic that is still going on in the world has shaken many different markets and industries across Canada. Still, the real estate market is the one that remains untouched and continues to thrive. According to the CREA, the average Canadian resale home price has gone up 15% in 2020 and another 10% throughout 2021. Experts predict that the trend will likely continue in the same direction for 2022.
Some of the early indicators tend to support this claim. For example, most major housing markets throughout the country are currently characterized as seller’s markets. The increasing lack of supply and continued high demand in the housing market will likely drive the prices further up, giving the home sellers more power.
The young families looking into acquiring a single-detached home can expect a slight increase in price and fierce competition when it comes time to make an offer. This year, some reports showed an increase of over 25% in single-detached homes in many markets around the country. Homebuyers have been leaning more towards purchasing homes with bigger spaces on large city's outskirts.
Despite the Delta variant earlier this year and currently the Omicron variant putting some barriers to the economic growth, the housing markets seem to remain unfazed. Moreover, given that the Canadian real estate market is usually a good indicator of the country’s economic activity, experts predict that the market trends should be starting to return to their natural cycle in Spring of 2022.
- National home sales went up by 0.6% from October to November this year.
- The newly listed properties numbers gained 3.3% over the same period.
- Since last year, The Home Price Index (MLS® HPI) rose by 2.7% this Fall and broke the year-to-year record to finish over 25%.
- Comparing 2020 to 2021, this year has been incredible for the number of residential properties sold. In 11 months only, 630,634 properties changed owners via Canadian MLS® Systems in 2021 compared to 552,432 total in 2020.
When taking a look at commercial real estate, the current situation obviously made it a bit more difficult for agents to rent or sell retail and office spaces consistently compared to previous years. On the flip-side, warehouses gained a significant uptick in the sales numbers. Whenever the world is able to slowly transition out of this pandemic and start seeing a more “normal” everyday life happening, the people can expect those industry sectors to bounce back. But there is still an argument on whether or not businesses will decide to move back completely to physical offices. After many have investing in technology and logistics, permitting their online capabilities and the opportunity to have their employees work remotely, the world will have to see will have to see how they react given no pandemic related restrictions again.
The upcoming year will be very revealing as to what are the intentions of some of the major players of each industry regarding remote working for some of their employees.
Early 2022 should remain one of the best times to invest in warehousing, and multi-family residences as some of the factors observed in 2021 may lead some buyers into a sense of urgency to get into the market, experts say.
Factors such as the low supplies in many housing markets across the country and the opportunity to lock in a lower mortgage rate before they increase may all contribute to a quite competitive real estate market for next year and continued growth of sales prices.
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Phone: +1 (250) 354-2979
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City: Nelson
State: British Columbia V1L 4H9
Country: Canada
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