Canadian housing prices are expected to continue accelerating throughout next year, as potential homebuyers keep relocating to the suburbs in lieu of heavily-dense urban and metro regions.
According to the results of Canadian Housing Market Outlook Report, which surveyed over 1,500 Canadians across the country, found that 49% of respondents anticipate the real estate market will remain robust come next year, while another 49% said they think real estate will be one of their best investment options.
However, even amid the optimism, the ongoing supply shortage of housing will continue to add further pressure on housing prices. As a result, RE/MAX forecasts that the average residential sales price will jump another 9.2% across the country next year, threatening to push some potential homebuyers out of their realm of affordability. “Market challenges such as rising prices and limited supply have impacted local markets from coast-to-coast, causing angst this past year among those looking to get into the market and those hoping to move up in it,” said RE/MAX executive vice president Elton Ash.
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To further complicate the situation, RE/MAX anticipates that the current migration trend into suburban and rural regions across Canada will also continue in 2022, particularly as Canadians grow accustomed to the permanency of remote work opportunities. “Less-dense cities and neighbourhoods offer buyers the prospect of greater affordability, along with liveability factors such as more space,” explained RE/MAX president Christoper Alexander.
“In order for these regions to retain these appealing qualities and their relative market balance, housing supply needs to be added. Without more homes and in the face of rising demand, there’s potential for conditions in these regions to shift further,” Alexander warned.
Information for this briefing was found via RE/MAX. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
