After a year of record-high pricing locking many aspiring homeowners out of the market, the average GTA home price is expected to continue soaring in 2022.
Royal LePage’s Market Survey Forecast, released on Wednesday, predicts that the average price of a GTA home will creep up towards $1.3 million. With an 11% jump in prices projected for the GTA in 2022, the average price of a home will increase to $1,256,500.
Looking just at single-family homes, for which Royal LePage forecasts a 10% growth, the average price is expected to hit $1,564,200 next year. Condos, on the other hand, will see a 12% growth bringing the average price up to $763,800. Interestingly, the GTA is the only major region in Canada where the price growth of condos is expected to surpass detached homes in 2022.
“Condos in the city of Toronto and in the greater region have rebounded with vigour, after taking a harder hit than any other major urban centre in the country at the onset of the pandemic,” said Cailey Heaps, who leads the Heaps Estrin Team at Royal LePage Real Estate Services Ltd.
“For a short period of time, prices dipped, and an onslaught of vacant units sent rental rates downward, but that trend was short-lived. Not only have condo prices rebounded, competition is heating up as entry-level buyers see them as an affordable way to get onto the real estate ladder.”
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Unlike most markets across Canada, Toronto’s housing market hasn’t been experiencing the typical slowdown seen in the winter months.
As we saw last year at this time, cold weather and the holiday season will do little to slow activity in Toronto. With tight competition and the looming threat of an interest rate hike in the first half of 2022, those who can transact now will not wait until spring, especially if they can lock in a lower mortgage rate,” Heaps said. “A large number of newcomers are also expected to enter Canada next year, and many of them will settle in the GTA, putting upward pressure on prices.”