Real estate industry

Canada’s real estate industry predicted slow price growth in 2022, but not anymore

Canada’s real estate industry is raising its expectations for next year. the Canadian Real Estate Association (CREA) predicts huge growth in the average home price in 2022. Just six months ago, they expected the boom of 2021 to be followed by slow growth. Now, in a market flooded with easy money, they are seeing a growth rate 12 times greater than previous forecasts for the summer.

Real estate prices in Canada are expected to increase 8% in 2022

The latest forecasts from the ACI point to huge growth next year, only slow compared to 2021. The average selling price in Canada is expected to reach $ 739,495 in 2022, up 7.6% from the previous year. last year. They also recorded significant gains in Ontario (+ 11.5%), New Brunswick (+ 11.4%) and Nova Scotia (+ 11, + 2%). British Columbia underperforms with a growth of 7.1%, but it is also by far the most expensive market.

Real Estate Price Forecast in Canada 2022

The expected average selling price for 2022 in Canadian dollars, as expected in December, September and June.

Source: ACI; Better accommodation.

Even the worst performing real estate markets are expected to post substantial gains. At the bottom of the average price growth list are Newfoundland (+ 4.6%), Alberta (+ 4.7%) and Saskatchewan (5.4%). Just six months ago, it was a whole different story.

No home price growth was expected just six months ago

In the CREA forecast for June 2021, the average sale price was only seen as making minor gains. Canada’s national average was expected to reach $ 681,515 in 2022, up 0.60% from the previous year. In case you missed it, the new forecast is about $ 58,000 higher.

Real Estate Price Forecast in Canada 2022

The forecast of the annual percentage change in the average selling price of a home in 2022 and the historical forecast of contrast.

Source: ACI; Better accommodation.

A similar trend can also be observed in the provincial distribution. Growth was forecast at much lower levels in Ontario (+ 3.2%) and British Columbia (+ 1.4%), for example. New Brunswick was seen as the market leader with 7.6% growth. Now, the country as a whole is expected to grow on average equal to the best performance in the June report.

This is a huge change of opinion for the real estate industry. Last summer was not to be outdone for stocks, as record home sales were reached. It was reasonable to expect that such significant growth would be followed by some sort of breathing space. Now that the easy money lingers on for much longer than expected, it’s out the window. The threat of an interest rate hike is hardly felt any more.

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