Harbourwalk condos.House prices continue to rise? Royal LePage, a Canadian real estate brokerage, said it expected a rise in interest rates in 2022 “may not be enough to offset the pressure of a sharp rise in home prices”, especially in the Greater Toronto area, where it expects average house prices to rise again by double digits.Please Visit: Harbourwalk condos to Get Your VVIP Registration Today!
As demand continues to outstrip supply, total house prices in the greater Toronto area rose 17.3% to 119800 yuan in 2021, the agency said.
It predicts that house prices in the greater Toronto area will rise by another 11% in 2022 and total prices will reach 1.243 million yuan by the fourth quarter.
Although the market expects Canadian banks to raise interest rates five times in 2022, significantly increasing borrowing costs, the agency expects house prices to continue to rise.
Phil Soper, president and CEO of Royal LePage, told CP24 on Friday morning: “We will see house prices rise by about half in the next few months, about half as much as in 2021, so although house prices continue to become more expensive, the rate of increase is declining.” It will return to normal price increases at some point in the future, and my guess is that we will return to single-digit growth by 2023, which is what we have been looking forward to in cities and across the country for decades. ”
The Bank of Canada’s lending rates have been below 0.25 since the early days of the epidemic, but the central bank is expected to start a cycle of rate hikes in the coming months as inflation soars and employment figures return to pre-epidemic standards.
When that happens, Soper says, it will make houses more expensive and “some people will be squeezed out of the market.”
But because of insufficient supply, this may not be enough to curb the rise in house prices, he said.
“We have been trying to achieve a balance between supply and demand for many years, but during the epidemic, when people paid so much attention to the house, it really peaked. People are saving money. they didn’t travel, they didn’t go to restaurants, they diverted the money to improve their lives.”
The median price of detached houses in the greater Toronto area rose 22.4 per cent to 1.4212 million in 2021, while the median price of apartments rose 14.8 per cent to 665400, according to Royal LePage.
However, Soper said that because of the “growth gap” in prices, the price of apartments is likely to rise faster than detached houses in 2022, at least in the GTA area.