Canada’s real estate industry is ratcheting up expectations for next year. The Canadian Real Estate Association (CREA) is forecasting huge growth for the average home price in 2022. Just six months ago, they had been expecting the boom in 2021 to be followed by slow growth. Now in a market flooded with easy money, they see 12x the rate of growth previously forecast in the summer.
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| Canadian Real Estate Prices Are Forecast To Rise 8% In 2022 |
The latest CREA forecast shows huge growth next year, slow only in contrast to 2021. Canada’s average sale price is forecast to hit $739,495 in 2022, up 7.6% from the previous year. They also see big gains in Ontario (+11.5%), New Brunswick (+11.4%), and Nova Scotia (+11.+2%). BC underperforms at 7.1% growth, but it’s also the most expensive market by a large margin
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| Canadian Real Estate Price Forecast 2022 |
| The average sale price forecast for 2022 in Canadian dollars, as forecast in December, September, and June. |
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Even the worst performing real estate markets are forecast to see substantial gains. At the bottom of the average price growth list is Newfoundland (+4.6%), Alberta (+4.7%), and Saskatchewan (5.4%). Just six months ago, this was a totally different story.
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| No Growth In Home Prices Was Expected Just Six Months Ago |
| In the CREA June 2021 forecast, the average sale price was only seen as making minor gains. Canada’s national average had been forecast to hit $681,515 in 2022, up 0.60% from the year before. In case you missed that, the new forecast is about $58,000 higher. |
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| Canadian Real Estate Price Forecast 2022 |
| The forecast annual percent change in the average sale price of a home in 2022, and historic forecasts for contrast. |
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| A similar trend can be observed in the provincial breakdown as well. Growth had been forecast at much lower levels in Ontario (+3.2%), and BC (+1.4%), for example. New Brunswick was seen as leading the market with 7.6% growth. Now the whole country on average is forecast to see growth equal to the best performer in June’s report. This is a huge swing in opinion for the real estate industry. Last summer was no slouch for values, as record home sales had been hit. It was reasonable to expect such large growth to be followed with a breather of some sort. Now with easy money persisting much longer than expected, that’s out the window. The threat of higher rates barely registers anymore. |
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