Canadian housing market to cool down in 2022, Royal LePage forecasts

Home prices increased by 25 per cent year-over-year last spring, creating bidding wars in cottage country and major urban centres. However, one of Canada’s largest real estate firms is predicting a cool-down in the housing market.

Royal LePage estimates home prices will only climb 16 per cent in the fourth quarter of 2021, pushing the average home price nationally to $771,000, before cooling further in 2022.

But experts say a structural housing shortage will keep home prices high even as the market cools. Anne Gaviola reports.

Home prices increased by 25 per cent year-over-year last spring, creating bidding wars in cottage country and major urban centres. However, one of Canada’s largest real estate firms is predicting a cool-down in the housing market. Anne Gaviola reports.

#GlobalNews

[menguardingtheirownwallets]

So when house prices 'cool' off, a person earning the average $50, 000 per year will only have to spend $1.2 Million to buy your average house, not the $1.4 million it cost now. Oh wow, that's such a relief, right?

[richboy]

In Canada, if home prices cannot increase 30% YoY, it is called cooling 😊

[joe_limon]

Interesting "cooling" = rapidly inflating but not quite maintaining 25% per year.

[ferrisbuellersdayoff]

based on what? --prices were/are high due to unprecedented market conditions and players.. Royal LePage is full of crap.. They have NO idea what's going to happen. They flipped a coin. Hey Lepage.. what's BTC going to do while you're at it.... ?

[tomacml]

No matter how hungry you are, there come a point you can’t eat no more. Only a limited person are rich, therefore only a small number buyers can afford at the peak. In short, nothing can continue forever. Even you will not last forever in your current physical form. The property you amass will be someone else someday. Enjoy your physical journey on planet earth, cheer!

[citizenm]

I think as all Canadains instead bringing more Chinese into this country we should help the Canadains who were born here or been here long time afford to buy a place. China made it clear they are hostile I don't know why they still want to bring more immigrants I guess the greed truly despicable.

[boromirsonofdenethor]

Just wait until the Bank of Canada lifts interest rates to 8% good luck paying your $4, 000 a month mortgage.

[DVinCanada]

To real estate people, It is always the best time to buy, doesn’t matter if house price goes up or down, or interest rate goes up or down.

[governorofflavortown]

Still completely unaffordable. I have to move to a different province just to be able to have equity.

[DnYD]

No future in this country for young people

[insanedb]

by cooling, you mean that winter is coming?

[whatislove]

That's a lie. There is not a shortage of housing. There is an over excessive tendency of homes and rental properties to be bought up and remain vacant, as big corporations hold the housing market hostage as homeless people are out on the street and homes remain unsold and family-less.

[pssongs]

They need to halt immigration until they figure out the housing crisis in canada. Whats the point of accepting new comers when life for people living in Canada is getting worse year after year?

[alwaysright]

If the government really cares about property or housing prices being affordable, they can easily create new laws to curp property buying and selling for profit.

[MortgageBrokerLondonOntario]

Yesterday the Bank of Canada predicted that it would still be higher than pre-covid, but cool down from what it has been.

[honoraryamerica]

They say this every year. Eventually the bubble is going to burst butd nobody really knows when, just like the financial crisis of 2009. Canadas economy is in steep decline that's for sure and our PPP ranking per capita is falling with it.

Toronto alone went from 10th most innovative city in the world in 2019, to #43 in 2021! That's as huge red flag for the future of our big, centrally controlled economy of low performing government workers and their kids.

Foreign money will remain out of Canada, our largest cities will just become mini-cast systems.

[tubetop]

Supply less than demand. Price dropping ain't gonna happen much. Basics of a market

[jonjones]

Interest rates have barely anything to do with prices. It is foreign billionaires that JT is welcoming in to price out vulnerable Canadian women from the housing market and making Canadian women have to move in with abusive partners just to afford housing. A recent report said that in the past decade around 30 billion dollars of residential GTA real estate was bought by shell companies. Things like raising interest and mortgage stress tests simply make it harder for hard working Canadians to afford shelter, while doing nothing to address the main issue: international billionaires holding hands strongly with justin with a passionate and unbreakable bond and treating residential Canadian shelter as their personal stock market playground, often with dirty money. It is neoliberal trudeau's favourite pasttime to price out vulnerable Canadian women and minorities out of the residential shelter market. As a bourgeois he doesn't know what hard work means, unlike the hard working doctors, lawyers, engineers, etc.. that he is helping his billionaire dirty money possessing champagne buddies price out of the Canadian shelter properties. Where is the ban on foreign ownership he lied about?

[MarketManiaCA]

Canada's housing prices will correct significantly. It's a case of when not if it will happen. If there's another stock market crash which looks likely this fall/winter then we could see more brain dead QE and even negative rates. This will just kick the can further down the road. Most will be in denial as it's estimated 70% of people suffer from the normalcy bias. Inflation is not over either. If you want to invest in an asset that you can buy with as little as $500 and appreciates over your lifetime then buy Gold and hold it for decades average yearly return of 10% since currencies took off the Gold standard. It's been trusted and used since Roman times. MMT never works!

[steveofsteve]

Unless prices drop this means nothing. Are peoples paycheques keep pace with home prices...not in the least. Canadians cant afford homes in the country they were born.
I see lots of immigrants getting new