Updated: Mar 17, 2022
HOUSING IN 2022
According to CREB, rising lending rates and higher home prices are expected to slow demand growth in 2022, bringing sales down from 2021’s record levels. However, overall, levels are expected to remain much higher than long-term trends, reflecting a strong demand environment. As we move through the economic recovery and job prospects improve, demand for resale housing will remain relatively strong.
The challenge in 2022 is expected to be related to supply. Starts activity did improve last year, which should help with overall housing supply in 2022, but resale supply may struggle to remain at adequate levels to support balanced conditions throughout the earlier part of the year.
Higher prices should prevent a significant slide in new listings growth this spring, (#springhousingmarket) ensuring conditions are not as tight as in 2021. However, the return of more balanced conditions is not expected until the latter part of 2022. The slow return to balanced conditions is expected to continue to support price gains this year, albeit at a slower pace than in 2021. Overall, citywide annual prices are forecasted to increase by over four per cent.