So, what comes next for Canadian real estate?

Lenders, economists and brokerage firms have been releasing predictions for the coming year. Some are optimistic with respect to what lies ahead, while others remain concerned about rising housing prices and market shortages.

With myriad issues affecting the market — COVID-19 being the largest disruptor — combined with rising costs and interest rates expected to increase next year, many potential investors and homebuyers are counting on research-based opinions to steer them in the right direction as they prepare for the big decision on whether to make that ultimate purchase.

In the past few weeks, four major voices in the real estate market have released their 2022 forecasts: CBRE, RE/MAX Canada, RBC Economics and Royal LePage. Here’s a breakdown of how each outlet is predicting what will happen next year.

RE/MAX Canada

In its 2022 Canadian Housing Market Outlook Report, RE/MAX Canada outlined some of the trends and changes we could expect for real estate come the new year.

In light of housing supply shortages, which will ultimately put pressure on prices, RE/MAX Canada predicts that there will be a 9.2 per cent increase in average residential sales prices across the country in 2022. Migration between provinces is expected to also be a key driver of buying and selling activity in many communities.

In Ontario, market activity is expected to “remain steady,” next year, but with varying levels of price growth across the regions. Larger markets in the province could see returning immigration place pressure on supply levels and prices. Ottawa, Toronto, Mississauga and Durham Region could see average prices climb five per cent, 10 per cent, 14 per cent and seven per cent respectively in 2022. In smaller communities such as Muskoka and Thunder Bay, the move-over trend is anticipated to help drive average sale prices up by 20 per cent and 10 per cent, respectively.

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