Following the global pandemic that hit Canada entirely, real estate prices have risen dramatically across the board in all categories. When comparing October 2021 to the same month the previous year, the national average house price increased by 18.2 percent. Following a dearth of supply and extremely strong demand, housing prices have reached dead-end according to Toronto Regional Real Estate Board (TRREB).
And the real estate market has pushed house purchases out of reach for millennials over the past year. Unfortunately, the majority of analysts believe house prices will continue to rise in the coming year. Despite rising interest rates and a scarcity of homes for sale, most of Canada’s largest mortgage lenders and real estate groups are predicting a strong housing market this year, with some expecting double-digit sales increases and sharp price increases, according to industry experts.
2022 Toronto Real Estate Predictions No.1:
Will House Prices Drop in Toronto 2022?
Unfortunately, even with anticipated interest rate rises, housing prices in the Greater Toronto Area are still likely to grow by 11 percent in 2022. According to a recent analysis, housing prices in Canada supposedly continue to rise until 2022, with not even the potential of increased interest rates expected to curb the upward trend in the near future.
As Canadian Real Estate Association asserts, the number of homes sold in 2022 will climb by 8.6 percent when compared to the previous year, with prices rising by 7.6 percent in the same year.
REMAX Canada states that Toronto real estate market might witness a 10% increase in prices this year:
Because of a lack of housing stock and high demand, we expect the Toronto housing market to remain in a seller’s market until at least 2022. The region’s demand is being driven by circulating buyers and renters. This circulation reflects single-family homes experiencing the greatest price appreciation last year, rising from $1,477,519 in 2020 to $1,710,304 in 2021 (+15.8 percent).
Click here to know more: 2022 Toronto Condo Market Predictions: market might witness a 10% increase in prices
Royal LePage also backs up this claim:
According to Royal LePage, the expected increase in interest rates in 2022 may not be sufficient to offset the significant upward price of homes, particularly in the Greater Toronto Area, where the average cost of a home is expected to rise by double digits once more in the next few years.
- A property in the Greater Toronto Area is expected to climb by 17.3 percent in 2021, to $1,119,800, according to a real estate firm, as demand continues to surpass supply.
- It anticipates that prices in the Greater Toronto Area will climb by another 11 percent in 2022, with the aggregate house price reaching $1,243,000 by the fourth quarter of that year.
There is little question that inflation will play a part in further complicating the housing market in the Greater Toronto Area. It will be more difficult for some purchasers to enter the market because of inflation and the corresponding higher mortgage rates, and we will probably see some difficulties in prices in different areas.
Click here to know more: 2022 Toronto Condo Market Predictions: How Inflation Affects Toronto’s Real Estate Market?
2022 Toronto Real Estate Predictions No.2:
What to expect from the 2022 Toronto real estate market?
The exorbitant rate of price rise is slowing down a bit. The price of homes will continue to climb gradually, but at a slower rate than in previous years.
Prices will gradually come down to their previous levels.
The fear of getting into an overheated home market has kept some purchasers away from the market for some time. Home prices would only return to where they were in 2014, even if home prices saw an unprecedented 50 percent decline.
There are only two choices in a property market, such as the one that the Greater Toronto Area is now experiencing. In order to keep up with growing property prices, either price must fall or wages must rise. Both options are undesirable.
Because earnings are not expanding at the same rate as real estate values, the only other option is for price rise to slow, with a further correction taking place at a later date.
When is the ideal time to list your property in Toronto?
If you’ve been thinking about selling your home, the beginning of the year appears to be an excellent time to do it.
If you’re wanting to either list your home or make it accessible off-market, please get in touch with us now!
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Here are the three most popular properties in Toronto:
Cielo Condos are premium condominiums created by the renowned developers Collecdev and Northrop Development Incorporated. Located in the Yorkville neighborhood of downtown Toronto, the building is set to be one of Toronto’s tallest landmarks. When you live at Cielo Condos, you have access to some of the finest educational resources in Canada, and it is just stepping away from Canada’s highest academic institution, the University of Toronto. Cielo Condos is also home to one of the busiest commercial districts in Toronto, and indeed all of Canada, with the best boutiques, the best restaurants, and the best bars to enrich your life. Cielo Condos is conveniently located with the Bloor subway station on your doorstep, along with bus stops, and trams to meet most of your travel needs. In this Victorian-style community, you’ll get not only the best of the best but also a high degree of serenity.
Leftbank Condos is a condominium project under construction by renowned developer Broccolini, which consists of 388 units on 34 floors. Among these 388 units, there are studios, one-bedroom, two-bedroom, and three-bedroom for you to choose from. The biggest selling point of this condominium is its view effect. From the spacious balconies and terraces, you will enjoy the magnificent view of Don River and the city of Toronto. This is a vibrant neighborhood surrounded by river and parkland, with Cabbagetown to the north and west, Corktown to the south, and scenic Don Valley and Regent Park to the winter. The average price of this condominium starts at $400,000 and is perfect for those looking for a quiet life in the heart of downtown.
Langstaff Gateway Condos is a new condominium development located at the intersection of Bayview Avenue and Langstaff Road East, handcrafted by renowned California planner Smart Growth. Langstaff Gateway Condos is at the absolute center of transportation, with a wide range of transportation options: GO Transit, TTC subway, Highway 407, Highway 7, and multiple bus routes. The investment housing market in the area is very hot, with over 400 corporate headquarters and over 900 technology companies in Markham, where Langstaff Gateway Condos is located, and demand for rental housing exceeds supply. This is definitely one of the best choices for investment property buyers.