by Nutan Brown
on Wednesday, February 2nd, 2022 at 2:54pm.
The Toronto real estate market saw record breaking numbers in 2021. An increase in demand for home buyers caused prices to rise to an all-time average high of $1.1 million, while home sales jumped 28% to 121,712. With that year now over, what can we expect in 2022?
A new report by Royal LePage is forecasting that in 2022 prices in the GTA will rise by another 11%, with the average home price reaching $1,243,000 by the fourth quarter.
This growth comes despite expectations that the Bank of Canada will increase interest rates within the first 3 months of 2022, which will increase the cost of borrowing and potentially push some buyers out of the market.
“We finished 2021 on an unusually strong note,” said Royal LePage president and CEO Phil Soper. “The winter has been an extremely active one, and we expect that to continue into the spring.”
He also said that there was far more interest in larger homes last year due to the pandemic, which forced many homes to become multiuse in terms of home offices and school work spaces. He predicts a “pendulum swing” will occur as Canada emerges from the impact of COVID-19, sparking interest in smaller condos again.
For anyone who is looking to enter the market, the coming year should eventually bring a period of relative moderation in housing prices. The need for more housing stock remains the most pressing issue and potential fix for the soaring market.
If you have any questions regarding the forecast for this year, or if you are thinking of entering the market, feel free to reach out to me with any questions.