Bill's 2022 Market Update

What a 2021 housing it has been for the Toronto and vicinity area. The average price went up by a whopping 24.2%! Housing in the 905 area went up by more than 30% in some areas. Generally, landed properties went up more than resale condominiums.

So, how will 2022 turn out? Here are my few point form predictions:

 

  1. a) With the still very acute housing inventory , 2022 will likely remain as a "Sellers" market. We currently have around 2-3 weeks worth of inventory. Hence, I predict a continual rise in prices even though it is a little more modest.

 

  1. b) with the government policy to let in over 400,000 new immigrants with a little lower threshold, the house purchase and rental market will remain very strong , especially, in the more affordable price range from $800,000 to $1,800,000.

 

  1. c) with the increasing trend of working from homes, the urbanization trend will slow down with families opting for more and newer spaces in the suburbs for a better work-life balance.

 

  1. d) in the advent of increasing rates, it should create an initial sense of urgency to get in and lock in these historic low rates hence, causing a surge in activities in the market in the Spring. 

 

  1. e) demands for housing from millennials , aging boomers and influx of immigrants will drive market activities and prices up.

 

In closing, all indications are pointing to a good and active housing market.

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