Happy New Year for the housing market? Expect another pandemic-fuelled seller’s market in 2022

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Double-digit price gains, investors, condos and suburbs expected to remain hot housing trends in 2022, experts say.

Toronto real estate broker Cailey Heaps remembers how worried she was at the start of the pandemic about whether her brokerage would be able to keep its agents employed.

Re/Max Canada is calling for home prices to rise about 9.2 per cent next year. President Christopher Alexander says Toronto-area markets will range from 7 to 8 per cent in Durham and Brampton, respectively, to 10 per cent in Toronto and 14 per cent in Mississauga. “The features that buyers will be looking for in housing include space and easy access to outdoors — the concept of having a lifestyle-driven home. Having your cottage and house in one has become more of a priority in the upper price point. That means heavily landscaped yards that allow you to entertain privately at home. People are really craving a lot of a natural light,” she said.

John Pasalis, president of Toronto’s Realosophy, expects 2022 to open with a highly competitive market in the first quarter. He bases his prediction on a less than a one-month supply of resale units and prices that at the end of the year were appreciating at about 20 per cent annually. A record year for pre-construction condo sales in 2017 will translate into a new high for condo completions in 2022 with about 30,000 slated for occupancy, said Hildebrand. He doesn’t expect the industry can deliver that many but there will be enough investor-owned new units to boost rental inventory and “restrain rents from completely running away next year,” he said.

“Relative to the cost of buying the average priced condo and carrying a mortgage and condo fees and property taxes, is still quite a bit less expensive than the ownership side,” he said. Royal LePage CEO Soper downplayed the impact of investors, saying they remain a tiny portion of the housing market if the concern is home flippers.

“With the ongoing pandemic and then the new mindset of home being a place to live and work, people are much more open to being in the suburbs because it doesn’t involve the commute it used to involve,” she said.

 

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Don't get this. What is happy about the RE market going out of control and reach of most ppl? OK, from RE agents', their cos. speculators, foreign many launderers etc point of view, this is as happy as it can be. Wonder whose side is your govt on. The one you voted for?

My neighbor bought two more houses in 2020 made over 2 mln in less than 2 years

Indeed. Low supply ( ppl do not want covidy buyers in their homes ) means simple economics. Supply and demand. Get pandemic under control first.

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