Persistent demand coupled with low inventory drives 2022 home price forecast higher to 15%

• By Mike Heddle
• Posted Monday, Apr 25, 2022 10:11 am

Persistent demand coupled with low inventory drives 2022 home price forecast higher to 15%

First quarter highlights:

• National aggregate home price soars 25.1% year-over-year in first quarter of 2022 – highest Q1 gain on record
• Kingston, Ontario, posts highest year-over-year aggregate and detached home price gains in Canada for the second straight quarter
• Four markets in Ontario’s Golden Horseshoe region report median single-family detached home prices above $1 million for first time
• Early signs of moderation appear as some urban markets unveil improved conditions for buyers
• Promising new federal and provincial policies aimed at tackling housing availability and affordability not expected to provide relief in 2022

ONTO, April 19, 2022 –According to the Royal LePage House Price Survey released today, the aggregate^[1] price of a home in Canada increased 25.1 per cent year-over-year to $856,900 in the first quarter of 2022; the highest gain on record since the Company began tracking aggregate prices. As strong buyer demand continues to outpace supply in almost every market from coast to coast, Royal LePage is forecasting continued strong seller’s market conditions this spring.

“Entering 2022, we had anticipated a strong first half, and moderating real estate markets thereafter. Call it buyer fatigue or easing demand, these periods of uncomfortably high home price appreciation do run their course. We are seeing the first signs of moderation in some regions, as more inventory is becoming available and competition eases slightly,” said Phil Soper, president and CEO of Royal LePage. “The first quarter of the year was so strong, however, that we are bumping up our 2022 outlook. And, home prices will continue to climb in the months ahead as a result of our relentless low supply-high demand...[READ MORE]