Three trend predictions on the direction of the country’s real estate market in the coming year, according to experts
Prepare for a drop in sales
the Canadian Real Estate Association predicts median home prices will rise to $ 718,000 (up 5.6 percent) in 2022. The number of home sales peaked in 2021 (about 656,000 properties traded through MLS), and “ expects national home sales to fall 12.1 percent to about 577,000 units in 2022. “
Bubbles can burst
In your annual global housing bubble index, Wealth management UBS Toronto ranked Toronto as the second worst risk-based city, alongside Frankfurt, Germany, although Vancouver is also in risk territory. His forecast for the Canadian housing market: “Extended affordability, stricter mortgage stress test requirements and an expected tightening of monetary policy by the Bank of Canada will challenge price levels in the coming quarters.”
Prices will go down, eventually
A recent RBC The report said pent-up demand would fuel frenzied market activity in the near term. “The upward pressure will take longer to dissipate than we previously thought. . . Prices are expected to stabilize in the second half of 2022 rather than the first part of the year. “
This article appears in print in the January 2022 issue of Maclean’s magazine with the title “Real Estate Predictions”. Subscribe to the monthly print magazine here.