Property prices will increase by nearly 10% in 2022 in the metropolis
Canadian real estate prices are expected to continue to rise in 2022, but at a slower pace.
Property prices are expected to continue to increase across Canada in 2022. The increase will reach 10.5% in Canada and 9% in the Montreal area compared to 2021, according to the latest forecast from broker Royal LePage.
Prices are expected to continue to grow in 2022 from coast to coast, but at a slower pace, the brokerage firm believes. Compared to 2021, Royal LePage predicts that the median price of a condominium will increase by 6.5%, to $ 447,300, and by 9% in the case of a single-family home in the Montreal area, to 648,600 & nbsp; $.
In the region, the condominium market is expected to gain momentum in the coming year due to the lack of single-family properties for sale. “Right now, the condo is the only segment where inventory is not absorbed almost immediately,” explains Vice-President and General Manager of Royal LePage in Quebec, Dominic St-Pierre.
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At the Canadian level, the median price of a single-family home and condominium is expected to increase by 11% and 8% respectively to reach $ 918,000 and $ 594,000. Other metropolises, such as Toronto or Vancouver, will see prices reach or exceed the 10% increase mark. In the Greater Toronto Area, a single-family home is estimated at $ 1,422,000 in 2021 and $ 1,564,200 in 2022, an increase of 10%. In Metro Vancouver, the price increase for a single-family home will reach 12%, as the price hovers from $ 1,690,000 in 2021 to $ 1,892,800 in 2022.
The emergence of the Omicron variant could stretch the period of exceptional strength in the country’s real estate markets, Royal LePage predicts. “The pent-up demand that has not been met in 2021 is expected to continue through the traditionally quieter winter season, and will spill over into the spring market in 2022,” analysts at Royal LePage predict.
“The housing shortage in Canada is a very real issue that will not be resolved overnight. While some believe the market is currently overvalued, there are many signals pointing to a level of demand that will continue to exceed inventory, helping to keep prices on the upward trajectory, ”said Phil & nbsp; Soper, President and CEO of Royal & nbsp; LePage.
Possible real estate bubble in Montreal, according to APCIQ
“We are indeed seeing the formation of the beginning of a real estate bubble in the greater Montreal region which is characterized, on the one hand, by the inability to the majority of first-time buyers to gain access to property and, on the other hand, by the vulnerability of new buyers and experienced buyers, ”said the Professional Association of Quebec Real Estate Brokers (APCIQ) in a press release issued yesterday./p>
The 2022 interest rate hike announced by the Bank of Canada should “curb strong inflationary pressures”, according to APCIQ. “This increase comes in time to defuse the formation of a bubble in the greater Montreal area. Market conditions, which will remain very favorable to sellers, will easily absorb the potential return of properties to the market, ”the director of the APCIQ market analysis department, Charles Brant, explained in a press release.