Here's what Toronto home prices are going to look like in 2022

Feb 16 2022, 11:49 pm

It looks like it’s still a seller’s market as Toronto home prices are expected to go up yet again, according to experts.

Real estate company RE/MAX recently released a Canadian Housing Market Outlook for 2022, which predicts that sale prices could increase by as much as 9.2% across the country.

For Toronto buyers, things are looking rather grim. Last year, the average price of a home in Toronto was $1,054,992. This year, it’s estimated to go up to $1,160,491, with an increase of over $105,000.

Christopher Alexander, president of RE/MAX Canada, says that inter-provincial relocation is still very much a trend that they expect to continue this year.

‚ÄúLess-dense cities and neighbourhoods offer buyers the prospect of greater affordability, along with liveability factors such as more space,” says Alexander. “In order for these regions to retain these appealing qualities and their relative market balance, housing supply needs to be added. Without more homes and in the face of rising demand, there‚Äôs potential for conditions in these regions to shift further.‚ÄĚ

Here are the projected increases for various types of Toronto homes:

  • Single-detached homes: up by 15.8% from $1,477,519 in 2020 to $1,710,304 in 2021
  • Townhomes:¬†up by 11.9% from $835,615 in 2020 to $935,015 in 2021
  • Condos:¬†up by 5.3% from $673,708 in 2020 to $709,602 in 2021

For Torontonians, this probably doesn’t come as much of a surprise.

Earlier this month, a report from RBC found that Toronto’s composite MLS HPI (Home Price Index) benchmark price reached $1.260 million in January, surpassing Vancouver’s $1.255 million and making it the most expensive market in Canada for the first time in decades.

Here are some other interesting finds from RE/MAX’s market research:

  • 23% of Canadians now have a greater desire to build their own home or buy pre-construction
  • 26% of Canadians have the desire to purchase a home while mortgage rates remain low
  • 62% of Canadians currently own a home. This is higher among those ages 35+ (70%) compared with millennials, ages 18-34 (42%)

In December last year, a survey from Sotheby’s International Realty Canada and Mustel Group found that 52% of Toronto’s Generation Z residents say they have abandoned the dream of single-family home ownership. This is higher than the 48% in Montreal and 39% in Calgary, but lower than the 56% in Vancouver.

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