Toronto 
The real estate firm, Royal LePage has released the annual Market Survey Forecast for the year 2022 which predicts aggregate Canadian home prices to rise by 10.5 per cent.
Royal LePage’s aggregate home price is based on a weighted model using median prices and includes all housing types.
According to the news release, the aggregate price of a home in Canada is set to rise 10.5 per cent year-over-year to $859,700 in 2022, with the median price of a single-family detached property and condominium projected to increase 11.0 per cent and 8.0 per cent to $918,000 and $594,000, respectively.
As expected, home prices in the Greater regions of Toronto and Vancouver may see the highest aggregate price appreciation at 11.0% and 10.5%, respectively.
The federal government’s plan to increase immigration levels, Canada’s strong economy, healthy full-time employment trends and pent-up demand from buyers who were unable to buy homes in 2021, will continue to impact housing prices.
The real estate firm says Omicron variant emergence may extend the period of unusually strong real estate markets.
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“While the emergence of another COVID-19 variant is disheartening, we can’t ignore its probable impact on our nation’s real estate market,” said Phil Soper, president, and CEO, Royal LePage in a news release. “It is hard to imagine that the Bank of Canada will begin the inevitable campaign to dampen inflation through higher rates with much still to be learned about Omicron and cases on the rise again. Employers may back-off plans to mandate a return to the office, sustaining the hyper-focus on the importance of the home as a place to both live and work. And, normal travel and entertainment will again be curtailed, continuing the household cash stockpiling trend that has defined the pandemic era.
Royal LePage expects that people who qualified for low-interest rates will enter the market in the new year ahead of an expected increase to interest rates.
“While Omicron appears certain to delay the inevitable, monetary policy will eventually tighten in the face of uncomfortably high inflation,” said Soper. “When policy makers signal that a rate hike is on the way, we expect a pull-ahead effect, with buyers rushing to market before borrowing costs increase materially. Those who have pre-qualified with lower mortgage rates will also be under time constraints to transact.”
Highlights of Royal LePage home price forecast 2022
The Royal LePage Market Survey Forecast provides year-over-year price expectations for Canada’s nine largest markets.
- The GTA is the only region where condominium price appreciation is forecast to outpace that of detached homes; prices expected to rise 12.0% year-over-year in 2022
- Greater regions of Toronto and Vancouver forecast to see highest aggregate price appreciation at 11.0% and 10.5%, respectively.
- Detached home prices in Halifax expected to rise 10.5%, followed by the Greater Montreal Area and Ottawa (9.0%)
- In Calgary, the aggregate price of a home in the fourth quarter of 2022 is forecast to increase 6.0 per cent year-over-year to $610,600.
- In Edmonton, the aggregate price of a home in the fourth quarter of 2022 is forecast to increase 5.0 per cent year-over-year to $450,500.
- In Winnipeg, the aggregate price of a home in the fourth quarter of 2022 is forecast to increase 6.0 per cent year-over-year to $372,100.
- In Regina, the aggregate price of a home in the fourth quarter of 2022 is forecast to increase 6.0 per cent year-over-year to $376,300.
