Average GTA home price expected increase 16.5% by the end of 2022

Apr 19 2022, 1:00 pm

The cost of housing continues to soar in 2022, and despite government promises to cool the market, prices are predicted to rise even more.

On Tuesday, Royal LePage released their House Price Survey and Forecast, and it predicts that the average price of a GTA home will creep towards $1.3 million. With a 16.5% price increase forecast, the average cost of a home will increase to $1,304,600.

Looking at single-family homes, the median price increased nearly 30% in the first quarter of 2022, hitting $1,588,900. On the other hand, condos will see a 21.7% growth bringing the average price to $764,200 in the same quarter.

“Demand for housing in Toronto and the surrounding region remains strong. Despite a slight increase in new listings in recent weeks, competition is still very tight among buyers looking to enter the market ahead of further interest rate hikes,” Karen Yolevski, chief operating officer, Royal LePage Real Estate Services Ltd, said in a press release.

Toronto’s market is growing even more competitive as people who left the city early in the pandemic are now moving back.

“The condo market is particularly competitive, as some former residents are returning to the city due to return-to-office mandates and first-time buyers looking to enter the market at a more affordable price point,” said Yolevski.

While the competition is still out there, Yolevski said that offers per property have slowed in some areas.

Ontario recently increased and expanded its Non-Resident Speculation Tax from 15% to 20%. The province is also trying to make it easier and faster for developers to build four to six-storey residential buildings.

Yolevski said that it would take time for these new policies to impact the market.

“While new policies aimed at improving real estate market conditions for buyers will take years to produce results, I commend the Ontario government for taking action to increase supply through needed densification. In Toronto, this will give young homebuyers hope that they will be able to purchase a property in the future,” said Yolevski.

She also warned that homebuyers wouldn’t see much in the way of relief for the non-resident buyers’ tax as foreign homebuyers make up a small portion of GTA homeowners.

Brooke TaylorBrooke Taylor

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