Shopping for real estate in 2022? Expect another challenging year. The market is expected to remain hot, with tough competition and rising prices carrying over from 2021.
Rising prices
Home prices will rise as they consistently have across the Greater Toronto Area, caused largely by the great number of interested buyers. The average selling price of all home types combined is expected to reach $1,225,000 – that’s an increase of 12 per cent from 2021, according to the Toronto Regional Real Estate Board.
Higher borrowing costs
Interest rates – like the cost of homes in the Greater Toronto Area – will also rise. These interest rate hikes by the Bank of Canada will likely impact the market. Historically, it’s led to fewer transactions, as with the rates going up, it may no longer be an affordable or an attractive option to purchase a home.
Detached homes will remain popular
Detached houses are expected to stay popular in 2022 with intending buyers, particularly in suburban areas. In the city of Toronto, more intending buyers will be interested in condos, and higher density low rise homes.
Heated bidding wars
With the highly competitive market in 2021, odds were that if you were interested in a
home, a number of other people were also interested in the same property. This led to
heated bidding wars, as multiple people competed for the same home. Often, the price of a home you were interested in could run out of your price range. Unfortunately, that’s expected to continue this year, with the tight market conditions we saw in 2021 carrying over, Mercer said. More people are choosing to make the Greater Toronto Area their home.
“Immigration into Canada and the GTA is expected to be at or near record levels in 2022,” Mercer said. “All of these people will require a place to live. On top of this, job creation in average to above-average income sectors is expected to remain strong, further buoying consumer confidence to make a large-ticket purchase of a home.”
This will cause strong competition between buyers, and properties to rise significantly in price.
Interested in buying or selling your home this year?
With the tough market, it’s important to have someone knowledgeable and experienced there to guide you through your home buying journey. Our team is led by Greg de Denus, an experienced sales representative in the Hamilton area. His passion and client focused approach are sure to help you sell your home, or end up in your dream living space in 2022.
Contact us today
If you have any questions, or if you’re ready to take this big step towards your new home, feel free to reach out to us. We’d be happy to help! You can call our office at 905-385-9200, or reach out to us through the contact portal on our website We look forward to hearing from you!