5 Things You Should Know
Canadian real estate’s proven its volatility during the past year, even amidst the height of the global pandemic. Forecasts show that 2022 will be in favour of home buyers. Although there’s no guarantee that home prices will drop next year, we’re expected to see a ‘soft landing’ due to relatively low supply and post-COVID uncertainties, according to RBC Senior Economist Robert Hogue.
Largely, supply and demand will dictate whether the year’s gonna be in favour of home buyers. Here are 5 things you need to know:
What to expect from mortgage rates next year?
There’s actually no guarantee that mortgage rates will decrease next year. Fortunately, housing demand’s starting to cool off after reaching a tipping point earlier in the year.
2. Will housing demand be high or low?
The Canadian housing market supply is expected to fall by 12% next year. The national average home price is still expected to rise by 5.6% next year, as a result of the shortage in supply.
What does this mean for you? The housing market’s a good example of how the law of supply and demand works. When demand for housing is high and supply is low, expect home prices to rise. When demand is low, it’s in your favour to buy a home.
3. What are the best cities in Canada to buy a home?
Many cities in Canada have well-established real estate markets, including Toronto, Victoria, Ottawa, London, Stouffville and several others. Toronto continues to lead the real estate market in terms of investment and development prospects.
First-time home buyers tend to consider home prices when they search for places to buy a home. However, it’s also essential to consider other factors, such as business opportunities, public transportation, amenities, community services, cost of housing and the rate of appreciation.
4. Will the housing market be home buyer-friendly?
You can expect the home buying process to return to a somewhat normal, pre-pandemic level next year. When housing demand decreases, home buyers will be able to shop the housing market without engaging in bidding wars. Many realtors forecast that 2022 will reshape the real estate industry.
5. Should I expect more choices in the market?
Based on the most updated forecast, the Canadian Real Estate Association (CREA) said that home prices are expected to keep rising, with supply being at “record lows.” However, after the market frenzy in 2021, housing demand started to fade and thus paved the way for more homes to choose from.
Final Verdict: 2022 to Reshape the Real Estate Market
As the world moves forward and returns to somewhat normal, so will the real estate market. After housing appreciation reached its tipping point this year, one can expect more balanced and stable housing prices in the coming year.
If you’re planning to buy a home next year, it’s recommended to work with a trustworthy mortgage broker or seek financial advice from an expert. Based just outside the GTA – Greater Toronto Area, Daisy Raouph is a mortgage broker and financial security advisor with over 30 years of experience in mortgage and financial services. Consult Daisy today.