The 2022 Real Estate Forecast for Canada

Canada’s real estate market has been widely discussed on the global stage: so it’s important to know what we’re expecting for 2022.  Although there have been some dips and declines, it seems like the market is still ramping upward, but is this towards a housing bubble in 2022?

Here’s what we know so far.

What Happened in 2020 and 2021?

In 2020, due to the beginning of the COVID-19 pandemic, many people stayed within their homes and didn’t want to put them on the market.  This lowered the number of homes that sold and slowly started to increase property value.

When spring came back around in 2021, people were ready to move and hoped to start fresh in a new area or new property. This caused a buying frenzy that we’re still seeing the aftermath of.  Housing prices skyrocketed, and properties didn’t stay on the market for very long.

As 2021 has rounded out to an end, these sales have started to slow, but it’s clear that the prices aren’t slowing down with them.

Real Estate Prices are Set to Rise

Real estate prices in Canada are expected to rise by 9.2% in 2022.  Migration between provinces has made it so that most real estate is bought by people from another city or region, which is expected to continue.

These prices aren’t foolhardy either since most of Canada’s markets will stay in a sellers’ market.  The continued housing shortage in Canada will be partly to blame for these rising prices, but other things will impact these numbers.

Housing Sales Are Set to Drop

Despite the prices rising, housing sales are set to drop.  Not enough to flip the market back to a buyers’ market, but enough to slow down the market to some degree.  This will be noticeable most in areas like Calgary, where real estate sales multiplied several times over in early 2021.  

On Track to Break Records

Almost 700,000 homes will be sold via Canada’s MLS systems in 2021, nearly 20% more than was seen in 2020. As a result, prices are expected to continue growing, even as sales slow, and record prices are expected.  Real estate in Toronto and Vancouver are expected to be the most drastically priced, with these cities already accidentally competing for the most expensive city in the country on a yearly basis.

Foreclosures Expected at the Beginning of the Year

Although Canadian banks are less likely to go for foreclosures and are far more likely to seek out sale rights: the pandemic and people’s lack of payment has changed things.  

In the spring of 2022, we’re expecting more foreclosures and repossessed homes, which means these may hit the market at a lower cost.  

There’s No Crystal Ball for Canada’s Real Estate

Although we’re working on the numbers from 2021 and 2020: there’s no guarantee on how the housing market will look in 2022.  If we’ve learned anything from the last couple of years, it’s that surprises can come from anywhere: so invest wisely and watch what’s happening in the market.

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