Real estate industry

Canadian real estate industry predicts higher prices next year

Canadian real estate should be slow for the rest of the year, but that won’t last very long. The Canadian Real Estate Association (CREA) shared their 2021 forecast. In the forecast for this year, they see minimal movement from the current average selling price. Next year they see huge gains coming back, especially in Ontario. The province is expected to see near double-digit home price growth next year.

Real estate prices in Canada are expected to increase minimally in 2021

The Canadian real estate industry will not see much more action for the remainder of the year, which still has a quarter to go. The national average selling price is expected to reach $ 680,025 in 2021. This would be an increase of only 0.03% ($ 170) from the annual average selling price (year to date) in August. In other words, they see virtually stable movement for the rest of the year, unlike last year’s boom.

Canadian Real Estate Forecasts

The forecast average selling price for 2021 and 2022.

Source: ACI; Better accommodation.

In Ontario, the gains should be a bit higher, but most of the movement for the year is already in place. The ACI has made an upward revision and is now forecasting an average selling price of $ 860,443 for 2021. That’s 0.31% ($ 2,688) above the YTD average in August, so no move huge. Especially compared to how the market was doing earlier this year.

In British Columbia, earnings are expected to be half the size of Ontario. They forecast an average selling price of $ 912,284 for 2021. Compared to the current year average in August, that’s 0.15% ($ 1,321) more. Not much of a climb, but still higher than forecast for the national average.

Real estate prices in Canada are expected to explode next year, especially in Ontario

The peak of the year may be reached, but CREA expects astronomical growth in house prices next year. The nationally expected average selling price reached $ 718,206 for 2022. In addition to the 2021 forecast above, that would mean another 5.6% increase ($ 38,181). That’s less than half of the cumulative gains from last year, but still decent growth for prices.

Change in Real Estate Forecasts in Canada

The annual percentage change in the expected average selling price for 2021 and 2022.

Source: ACI; Better accommodation.

Ontario real estate is expected to far surpass the national average. The average selling price is expected to reach $ 942,325 for 2022. This is an increase of 9.5% ($ 81,882) from the 2021 forecast, which is less than half of the expected gains this year. . While the payoff is just as big as ever, most buyers might not like the “slowdown” in growth.

Real estate in British Columbia is expected to underperform the national average next year, which is a bit of a shock. The expected average selling price is $ 947,434 for 2022. The average is 3.9% ($ 35,150) higher than expected for this year’s total. Just a little above the expected inflation rate – which is great, but not the boom in Ontario.

Not much price growth expected for the rest of the year, but we’ve already seen healthy YTD gains. Next year CREA will grow much slower, but even half this year’s rate is huge. Ontario is an outlier, where prices are climbing more than the median gross household income.

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