CREA says sales will slow but prices rise in 2022
January 3, 2022
The Canadian Real Estate Association (CREA) forecasts housing sales will moderate next year, but prices will remain high and will accelerate into 2022 due to a lack of supply.
“While price growth is not expected to be as extreme in 2022, many of the conditions that supported it right up until the end of 2021 will still be there on New Year’s Day,” CREA said in a release.
While interest and mortgage rates are expected to rise and calm some market activity, the forecast suggests appetite for home ownership will still be strong and lack of available properties will mean rising prices.
In November alone, the MLS Home Price Index rose 2.7 per cent month-over-month and was up a record 25.3 per cent year-over-year.
CREA has projected that the national average home price will have risen by 21.2 per cent on an annual basis to $687,500 by the end of 2021.
CREA predicts the national average home price will rise by 7.6 per cent on an annual basis to around $739,500 in 2022.
It warned that the forecast is “conservative” because in November 2021 the national average price was almost $721,000.
CREA said the highest prices in 2022 will be seen in B.C. and Ontario, where it predicts average home prices to reach $990,038 and $971,080 respectively.
The lowest prices will be in New Brunswick and Newfoundland where average prices are predicted to hit $275,190 and $286,341 respectively.