This is what experts say will happen with Toronto's real estate market in 2022
Toronto saw record-breaking increases in home prices in 2021 but things are looking a bit different for 2022.
Toronto's real estate market put home purchases way out of reach for millennials over the past 12 months and, unfortunately, most experts are predicting housing prices will continue to grow next year.
Canadian home values are expected to rise strongly again in 2022, however at a slower pace compared to 2021, according to the Royal LePage Market Survey Forecast.
Just Released: Royal LePage’s 2022 Market Survey Forecast https://t.co/rCy0blGu8v— Royal LePage Canada (@Royal_LePage) December 17, 2021
In the GTA, the aggregate (based on a weighted model using median prices and includes all housing types) price of a home in the fourth quarter of 2022 is forecast to increase 11 per cent year-over-year to $1,256,500.
The median price of a single-family detached property is expected to rise 10 per cent to $1,564,200, while the median price of a condominium is forecast to increase 12 per cent to $763,800 by the end of 2022.
The Ontario real estate market is anticipated to remain steady in 2022, according to the RE/MAX Canadian Housing Market Outlook. RE/ MAX brokers predict that Muskoka will see one of the highest average sale price increases at 20 per cent.
Mississauga will meanwhile see the biggest hike in the GTA at 14 per cent compared to Toronto's predicted 10 per cent increase.
So when should buyers start looking again? Some experts say the market will remain hot early in the year because there simply aren't enough properties for sale to meet demand, and people will want to take advantage of low mortgage rates.
"Supply will be a critical metric to watch heading into the new year – especially knowing that we may see a hotter January and February than usual, as buyers look to lock in a mortgage rate before next year's anticipated increases," says CEO of Zoocasa, Lauren Haw, in Zoocasa's Housing Market Predictions 2022 report.
Some experts say the market will cool in the summer.
"By July things will slow down, especially August," Nasma Ali, founder and realtor at One Group, told Yahoo Finance Canada. "All the people that really wanted to move because of COVID, by then that will be kind of the last batch."
No one, however, has a crystal ball, and it is hard to say for certain what will happen in 2022.
"There are a lot of factors coming into the market in 2022 that we've seen, historically, create a lot of urgency in buyers to get into the market," says Haw.
"Things like trying to lock in a mortgage rate before rates increase, choosing a home to weather stronger pandemic restrictions from Omicron, or competing in a market with extremely low supply are all factors that are on the table for next year, and could contribute to making a highly competitive real estate landscape with strong price growth."
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