Canadians continue to be confident in the housing market,
with the inter-provincial relocation trend likely to remain strong
in 2022
- Migration between provinces expected to continue in 2022,
potentially impacting local market conditions, according to 53 per
cent of RE/MAX brokers (20 out of 38)
- 49 per cent of Canadians believe the housing market will remain
steady in 2022 and view real estate as one of the best investment
options over the next year
- Some of the highest outlooks are anticipated for Atlantic Canada, with Moncton and Halifax projecting average residential sales
prices to increase by 20 per cent and 16 per cent respectively in
2022
- 95 per cent of regions (36 out of 38) surveyed are likely to
remain seller's markets in 2022
TORONTO and KELOWNA, BC, Dec. 1,
2021 /CNW/ -- RE/MAX Canada
is anticipating steady price growth in 2022, with inter-provincial
migration continuing to be a key driver of housing activity in many
regions, based on surveys of RE/MAX brokers and agents, as
reflected in RE/MAX's 2022 Canadian Housing Market Outlook
Report. The ongoing housing supply shortage is likely to
continue, putting upward pressure on prices. As a result of these
factors, RE/MAX Canada estimates a
9.2 per cent increase in average residential sales prices across
the country*.
"Based on feedback from our brokers and agents, the
inter-provincial relocation trend that we began to see in the
summer of 2020 still remains very strong and is expected to
continue into 2022," says Christopher
Alexander, President, RE/MAX Canada. "Less-dense cities and neighbourhoods
offer buyers the prospect of greater affordability, along with
liveability factors such as more space. In order for these regions
to retain these appealing qualities and their relative market
balance, housing supply needs to be added. Without more homes and
in the face of rising demand, there's potential for conditions in
these regions to shift further."
Despite the global pandemic, many Canadians still feel confident
in the real estate market. According to a Leger survey conducted on
behalf of RE/MAX Canada, 49 per
cent of Canadians (59 per cent of homeowners vs. 34 per cent
non-homeowners which included renters, those not looking buy, and
those currently looking to purchase), believe real estate will
remain one of their best investment options in 2022. Additionally,
49 per cent of Canadians are confident the market will remain
steady next year.
"Canadians recognize the value and investment potential in their
homes. However, market challenges such as rising prices and limited
supply have impacted local markets from coast-to-coast, causing
angst this past year among those looking to get into the market and
those hoping to move up in it," says Elton
Ash, Executive Vice President, RE/MAX Canada. "Despite this, it's encouraging to see
that many Canadians are feeling confident in the housing market in
2022 and view it as a solid investment."
A regional overview: 2022 Canadian housing market
insights
RE/MAX brokers and agents in Canada were asked to provide an analysis of
their local market in 2021 and share their estimated outlook for
2022. Based on their insights, 95 per cent of housing markets in
Canada are expected to be seller's
markets, impacted by limited housing supply and high demand.
Western Canada
The
Calgary and Edmonton markets shifted from balanced
conditions in 2020 to seller's markets in 2021, which brokers and
agents in the region expect to continue into 2022. This is
attributed to heightened demand prompted by the inter-provincial
migration trend that took place throughout 2021, which saw many
homebuyers from Ontario and
British Columbia driving demand
high, while supply remained low.
In addition to an increase in out-of-province buyers flocking to
Edmonton, the region has also
welcomed investors who found themselves priced out of other
markets. RBC's provincial outlook for Alberta puts
this province ahead of all others in terms of economic growth in
2022, which should bode well for homebuyers and investors alike
2022.
Regions such as Victoria,
Nanaimo, Regina and Kelowna also experienced an influx of buyers
in search of larger properties and greater affordability, which is
likely to continue pushing demand and prices up in 2022. This trend
has notably increased demand for single-family detached homes and
in some regions, condos as well, which may continue in 2022.
Despite some buyers choosing to move away from urban centres
such as Vancouver/Greater Vancouver in favour of suburban areas
within British Columbia, or
leaving the province entirely, Vancouver/Greater
Vancouver has remained a quality place to live. The region
continues to draw interest from Canadian and international buyers,
a trend that is likely to grow next year, in tandem with rising
immigration. Vancouver/Greater
Vancouver is expected to remain a seller's market in 2022,
providing inventory stays tight and current demand continues,
according to a RE/MAX broker in Greater
Vancouver Area.
Winnipeg is a slight outlier in
Western Canada, with a buyers'
market that is anticipated to continue in 2022. Young couples
enjoying the freedom to work from home have been driving much of
the demand in the region, especially for one- and two-story
detached homes. The appeal of Winnipeg has had less to do with
affordability, and more with lifestyle shifts such as hybrid
working environments.
Ontario
According to
the RE/MAX broker network in Ontario, market activity across the province
is anticipated to remain steady in 2022, with continued average
price growth, although at widely varying degrees. RE/MAX brokers
anticipate average sale price increases in smaller markets such as
North Bay (four per cent);
Sudbury (five per cent);
Thunder Bay (10 per cent);
Collingwood/Georgian Bay (10 per
cent); and Muskoka (20 per cent), where the move-over trend has
remained strong. Meanwhile, in larger markets within the province,
there's a possibility that more immigration could weigh on supply
levels and prices, including Ottawa (five per cent); Durham (seven per cent); Brampton (eight per cent); Toronto (10 per cent); Mississauga (14 per cent).
When it comes to price appreciation year-over-year, there are a
few regions that stood out in 2021 for their exponential increases
across all property types, including Brampton, which rose from $869,107 in 2020 to $1,085,417 in 2021 (25 per cent); Durham from $706,818 in 2020 to $914,48 in 2021 (29 per cent); and London from $487,500 in 2020 to $633,700 in 2021 (30 per cent). In comparison,
Toronto experienced a modest
seven-per-cent increase year-over-year ($986,085 in 2020 to $1,054,922 in 2021).
Atlantic Canada
All
of Atlantic Canada's regions
analyzed are currently seller's markets, with potential for average
sale prices to increase between five to 20 per cent in 2022,
according to RE/MAX brokers and agents. Larger urban centres
including Moncton, Fredericton, Saint
John, Halifax, Charlottetown and St. John's have all experienced an influx of
out-of-province buyers, especially from Ontario, moving to the region in search of
greater affordability and liveability.
Due to this spike in demand, much of the region has experienced
increasing competition, especially among single-family detached
homes and condos in some cities. There's a possibility that this
may further be amplified as immigration continues to grow in the
region.
According to RE/MAX brokers and agents in the region, new
construction is anticipated to remain strong into 2022, although
construction activity may be dampened by ongoing supply shortages
and delays in permits related to the pandemic backlog.
Seller's market conditions are expected to prevail across the
region in 2022, with the exception of Charlottetown and Southern Nova Scotia, which may return more to
a balanced state as activity gradually begins to decrease.
These factors have led to some of the highest price outlooks in
the country, with Halifax and
Moncton projecting estimated
average residential sales price to increase by 16, and 20 per cent
respectively.
Additional findings from the 2022 RE/MAX Canada Housing
Market Outlook Report:
- Two-in-five Canadians trust their agent to advise them during
the current real estate landscape (43 per cent)
- 23 per cent of Canadians now have a greater desire to build
their own home or buy pre-construction
- 26 per cent of Canadians have the desire to purchase a home
while mortgage rates remain low
- 62 per cent of Canadians currently own a home. This is higher
among those ages 35+ (70 per cent) compared with Millennials, ages
18-34 (42 per cent)
- The majority of Canadians (72 per cent) not buy or sell a home
in the past year.
About the 2022 Housing Market Outlook Report:
The 2022
RE/MAX Housing Market Outlook Report includes data and insights
from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on
market activity and local developments. Regional summaries with
additional broker insights can be found at REMAX.ca. The overall
outlook is based on the average of all regions surveyed, weighted
by the number of transaction in each region.
*2020 average residential sale price numbers were full-year,
2021 were from January 2021 –
October 31, 2022.
About Leger
Leger is the largest Canadian-owned
full-service market research firm. An online survey of 1,554
Canadians was completed between October
29-31, 2021 using Leger's online panel. Leger's online panel
has approximately 400,000 members nationally and has a retention
rate of 90 per cent. A probability sample of the same size would
yield a margin of error of +/- 2.5 per cent, 19 times out of
20.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC
is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than
140,000 agents in over 8,600 offices across more than 110 countries
and territories. Nobody in the world sells more real estate than
RE/MAX, as measured by residential transaction sides. RE/MAX was
founded in 1973 by Dave and Gail
Liniger, with an innovative, entrepreneurial culture
affording its agents and franchisees the flexibility to operate
their businesses with great independence. RE/MAX agents have lived,
worked and served in their local communities for decades, raising
millions of dollars every year for Children's Miracle Network
Hospitals® and other charities. To learn more about RE/MAX, to
search home listings or find an agent in your community, please
visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Forward looking statements
This report includes
"forward-looking statements" within the meaning of the "safe
harbour" provisions of the United States Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be
identified by the use of words such as "believe," "intend,"
"expect," "estimate," "plan," "outlook," "project," and other
similar words and expressions that predict or indicate future
events or trends that are not statements of historical matters.
These forward-looking statements include statements regarding
housing market conditions and the Company's results of operations,
performance and growth. Forward-looking statements should not be
read as guarantees of future performance or results.
Forward-looking statements are based on information available at
the time those statements are made and/or management's good faith
belief as of that time with respect to future events and are
subject to risks and uncertainties that could cause actual
performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. These risks and
uncertainties include (1) the global COVID-19 pandemic, which has
impacted the Company and continues to pose significant and
widespread risks to the Company's business, the Company's ability
to successfully close the anticipated reacquisition and to
integrate the reacquired regions into its business, (3) changes in
the real estate market or interest rates and availability of
financing, (4) changes in business and economic activity in
general, (5) the Company's ability to attract and retain quality
franchisees, (6) the Company's franchisees' ability to recruit and
retain real estate agents and mortgage loan originators, (7)
changes in laws and regulations, (8) the Company's ability to
enhance, market, and protect the RE/MAX and Motto Mortgage brands,
(9) the Company's ability to implement its technology initiatives,
and (10) fluctuations in foreign currency exchange rates, and those
risks and uncertainties described in the sections entitled "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q filed with
the Securities and Exchange Commission ("SEC") and similar
disclosures in subsequent periodic and current reports filed with
the SEC, which are available on the investor relations page of the
Company's website at www.remax.com and on the SEC website at
www.sec.gov. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on
which they are made. Except as required by law, the Company does
not intend, and undertakes no duty, to update this information to
reflect future events or circumstances.
SOURCE RE/MAX Canada