As the final days of 2021 draw to a close, what can we expect from Toronto’s housing market? Different sources offer different insights into what the new year might bring. We’ll recap two of the more interesting trends for you today.
Tight supply, price stability
As reported in CP24, according to the Canadian Real Estate Association housing sales are set to drop but they don’t anticipate any ease in pricing. Instead, they expect prices to increase because there will be less supply on the market. Homeowners who can’t afford to remain in the same neighbourhood if they sell, but who still want to upgrade their homes are increasingly opting to renovate their properties instead of selling them. This means that fewer homes are available to buy and this will automatically continue driving house prices up. In fact, according to the article, on a seasonally adjusted basis, housing prices were up 1.4% this past October.
The only factors that could temper rising prices would be an increase in both interest and mortgage rates. And, while the majority of economists polled by Reuters in early December predicted a Bank of Canada interest rate hike in Q3 of 2022 and a possible rise in Q2, whether that hike materializes will depend heavily on how impactful a fourth, and potentially, fifth wave of Covid might be.
Narcity meanwhile is reporting that condo prices are set to rebound in a big way in 2022. Condo price increases are expected to outpace those of single-family detached homes only in Toronto. The condo market was hard hit with Covid and started to rebound in 2021, but will regain much of its former momentum in 2022.
So, in all, 2022 is looking to be a very good year for those looking to sell, and a more challenging year for those who want to buy. Through it all, we will keep you abreast of your options for buying and selling. And, we will help prepare your property so that you always come out ahead.
Happy New Year 2022 from all of us at Imaginahome, to all of you!