There’s no doubt that 2021 was an exceptional year for the real estate market. And now, many individuals are questioning what the upcoming year will look like in terms of home prices. While some believe that the real estate market will eventually crash or stabilize, around 49% of Canadians believe that the market will remain steady for the upcoming year.
So, this leads us, as well as all Ontarians, to wonder… will prices continue to increase over the next 10 months? What can we expect to happen in the market this year?
The Housing Market Currently
In our January Market Update, we took an in-depth look at the market for Oakville, Burlington, and Toronto, comparing the start of the 2021 season to the beginning of this year. It was incredible to see that not only did the year-over-year average price increase as much as 29% from last year to this, but the average listing days on the market also decreased by almost 50%.
There’s no doubt that we’re still in a seller’s market and after having a year of this outrageous market under our belt, we’re noticing that home buyers are starting to move a little quicker, putting forth larger bids in a shorter period of time.
We’ve also noticed a decrease in available listings across the board. This may be connected to the increase in COVID numbers during the month of January, and home sellers refraining from having multiple strangers enter their homes. However, while it’s a promising time for anyone to sell their home, we recognize the fear and anxiety that home sellers experience after selling their home and then entering the market as a buyer. So, while many are interested in selling their home and reaping the rewards, there also are many sellers who are not interested in entering the market as a buyer given the current climate.
With these details being present and a large increase in average listing price right off the get-go, it’s safe to say that the market will not slow down anytime soon. In fact, according to RE/MAX, home prices are expected to rise another 9.2% by the end of the year.
What Can We Expect Moving Forward
Currenty, 95% of RE/MAX regions are analyzed to remain in a seller’s market this year. This includes Hamilton, Toronto, Oakville, and Burlington. While this may be discouraging to some, it appears as though most individuals who have decided to move or buy their first home are not allow the rising prices to affect their overall purchasing decisions. And so, the market will contine…
Some other trends that will also emerge as individuals work to operate under this market include:
- Migration between provinces, as home buyers and sellers look to other markets to make purchases and investments in
- Purchasing of new builds or condos and home that are in pre-construction
- Home buyers opting in to build their own home
- Purchasing of eco-friendly homes (around 53% of millennials mentioned their desire to buy an eco friendly home)
- The continued desire among homeowners to purchase a home due to the low mortgage rates available
- Home renovations increasing as 59% of Canadians have admitted to understanding and acknowledging the return on investment that home renovations have
For a full detailed look on the upcoming trends of the market for 2022, check out the RE/MAX report available here.
We understand that the 2022 housing market will be a seller’s market with increasing home prices and limited availability, however it is important to note that month to month and often week to week things are changing. If you are in the market, as either a home buyer or seller, you should be relying on your real estate team to help inform you, guide you, and achieve your desired home goals.
Of course, if you need any additional advice or help this year, feel free to contact us or check out our informative home buyer and home seller guides to help make your process and journey easier. It’s set to be another interesting year, and we’re wishing all home buyers and sellers the best of luck.