ray lee RE/MAX

Good Morning!

Where Canada’s housing market is going has been the subject of much debate lately.

Will the market in 2022 cool as we saw earlier this year or will the gains return as we saw in October?

In a report out this morning, real estate company RE/MAX is in the latter camp, predicting home prices will rise by 9.2% in 2022.

The migration between provinces has been a big driver of the housing boom during the pandemic, as buyers, now able to work from wherever, sought the bigger spaces and smaller prices of real estate outside of the big city centres.

“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 of RE/MAX Canada.

It’s this provincial migration that makes the outlook for the Atlantic provinces one of the brightest in the country. Over the pandemic, a flood of out-of-province buyers, many from Ontario, have snapped up properties in the larger centres such as Moncton, Fredericton, Saint John, Halifax, Charlottetown and St. John’s.

RE/MAX expects the sellers’ market here to continue, except in Charlottetown and southern Nova Scotia, where it sees the return of more balanced conditions.

Halifax and Moncton though are expected to see price increases of 16% and 20%, respectively, some of the highest in the country.

RE/MAX expects the vast majority of Canadian regions (95%) to remain in a sellers’ market during 2022.

And many Canadians agree with them. About half of those surveyed in a Leger poll believe that real estate will remain one of their best investment options in 2022.

In Ontario, some cities stood out in 2021 for their price appreciation including London, where prices soared 30%, Durham, up 29% and Brampton, up 25%.

In 2022, RE/MAX brokers see strong price growth in smaller centres such as Sault Ste Marie, rising 15%, Thunder Bay, 10%, and Muskoka, 20%.

Looking for a deal? You could try Winnipeg, one of the few buyers’ markets left in Canada. RE/MAX expects this to continue in 2022 with prices rising just 3.5% to an average of $322,858.94.