Canadian house costs predicted to increase by 10.5 per cent in 2022

Key takeaways: 

• Canadian house costs are anticipated to increase by 10.5 per cent in 2022.
• Toronto, Vancouver and Halifax are launched to notice the biggest gains.

House costs are predicted to rise in 2022 in Canada: 

“While some believe that housing is now overvalued, signals point to a level of demand that will continue to outpace inventory, keeping prices rising on a vertical upward trajectory,” Royal LePage president and CEO Phil Soper stated in a statement. “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.” Source – cbc.ca

Posted Wednesday, the 2022 Royal LePage Market Survey Forecast expects the aggregate cost of a house in Canada will rise by 10.5 per cent to $859,700 by late 2022. Aggregate cost directs to the “weighted average of the median values” of single-family houses and condominiums in a given region. Royal LePage also expects the median cost of a single-family detached home in Canada to rise by 11 per cent to $918,000 in 2022, while condominium prices are launched to increase by eight per cent to $594,000.

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In a market characterized by lower supply, Soper stated the gains will be caused by eager buyers who were unfit to ensure houses in 2021, increasing immigration, as well as low-interest rates and a continued focus on isolated work as COVID-19 variants strangle Canada’s reopening programs, forcing people to save more money as travel and entertainment choices reduce.

“All of these economic variables have been shown to stimulate housing activity,” Soper described. “Many of those looking to purchase a home, whether their first, an upgrade, or a recreational property, stand able to take advantage of improved savings and record-low interest rates.” Source – cbc.ca

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