19 Jan Homebuyers brace for continued price increases Spring of ’22
Homebuyers brace for continued price increases Spring of ’22
Demand for homes remains high across the country as Canadians continue to prioritize their living space over other purchases. However, housing shortages characterized many urban centres before the pandemic and supply has continued to tighten. Multiple buyers competing for too few properties has resulted in continued upward pressure on prices and buyers who were unsuccessful are strengthening the pipeline of demand. With no supply relief on the horizon, homebuyers brace for continued price increases in Spring of ’22. For Ottawa, Royal LePage forecasts a 9% increase in the median aggregate house price Q4 2022 year over year. See the Royal LePage 2022 Market Survey Forecast for Canadian Cities.
“Everywhere, in our largest urban centres, and in the nation’s small and medium-sized towns and cities, new homes are not being built fast enough to satisfy growing demand,” said Phil Soper, President and CEO of Royal LePage and Bridgemarq Real Estate Services, Inc. “In addition to the slow and expensive regulatory processes that burden builders, construction has been hampered by pandemic-specific challenges, including labour shortages and the increased cost of construction materials as suppliers struggle with supply chain issues. Some developers have been hesitant to commit to new projects.”
House Prices across the Country
Nationally, the aggregate price of a home increased 17.1% year-over-year to $779,000 in the fourth quarter of 2021. When broken out by housing type, the national median price of a single-family detached home rose 21.1% year-over-year to $811,900, while the median price of a condominium increased 15.8% year-over-year to $553,800.
Fourth quarter press release highlights:
- High demand outstripping low inventory at start of 2022 signals further home price gains going into spring market
- 87% of the report’s 62 regions saw double-digit year-over-year aggregate price growth in Q4
- 61% of the report’s 62 markets saw a quarterly aggregate price increase of 3% or greater
- Kingston, Ontario, posts highest year-over-year aggregate and detached home price gains in Canada (38.1% and 44.3%, respectively)
Using the Royal LePage market data, local Ottawa Real Estate Board market information and our knowledge of the Ottawa communities we would be happy to provide you with a market update on your neighborhood or an evaluation of your home. Feel free to contact us.