2022 Real Estate Forecast

Dated: January 14 2022

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Homebuyers brace for continued price increases and tight competition this spring following 
double-digit gains in final quarter of 2021- by Royal LePage Canada

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Vancouver homebuyers face tight competition and rising prices as demand outpaces supply across the greater region Detached home prices increased 23.3% in the fourth quarter of 2021 VANCOUVER, January 14, 2022 – According to the Royal LePage House Price Survey released today, the aggregate1 price of a home in Greater Vancouver increased 17.1 per cent year-over-year to $1,253,300 in the fourth quarter of 2021. Broken out by housing type, the median price of a single-family detached home increased 23.3 per cent to $1,707,900, while the median price of a condominium increased 12.6 per cent to $717,200 during the same period. “The supply of available homes in every property segment has reached historic lows, meaning prices can only move up,” said Randy Ryalls, general manager, Royal LePage Sterling Realty. “And, because the inventory shortage cannot be solved quickly, tight competition and rising prices are likely to persist for the foreseeable future.” Ryalls noted that multiple-offer scenarios are the norm, and most properties listed sell over the asking price, usually without conditions. In the city of Vancouver, the aggregate price of a home increased 15.4 per cent year-over-year to $1,375,000 in the fourth quarter of 2022. During the same period, the median price of a singlefamily detached home increased 14.4 per cent to $2,498,000, while the median price of a condominium increased 6.5 per cent to $788,400. “We’ve begun the year with a record low number of homes for sale. Buyers who were unable to transact in the final quarter of 2021 will resume their search, in addition to new demand which normally arrives to the market toward the spring. Without a significant increase in the inventory of available homes, and with the possible impact of the emergence of Omicron, upward pressure on prices will persist and sales volumes are not likely to increase in the near term,” added Ryalls. In December, Royal LePage issued a forecast projecting that the aggregate price of a home in Greater Vancouver will increase 10.5 per cent in the fourth quarter of 2022, compared to the same quarter in 2021.

Nationally, the aggregate price of a home in Canada increased 17.1 per cent year-over-year to $779,000 in the fourth quarter of 2021. Canada’s real estate market has sustained another year of record prices, as strong buyer demand continues to outpace supply in almost every market from coast to coast. Canada’s chronic housing shortage pre-existed the pandemic and with growing household formation and more newcomers to Canada adding to demand, affordability threatens to erode again. “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 Soper. “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.” The Royal LePage National House Price Composite is compiled from proprietary property data, nationally and in 62 of the nation’s largest real estate markets. When broken out by housing type, the national median price of a single-family detached home rose 21.1 per cent year-over-year to $811,900, while the median price of a condominium increased 15.8 per cent year-over-year to $553,800. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company. In December, Royal LePage issued its 2022 forecast stating that the national aggregate price of a home is expected to increase 10.5 per cent year-over-year. Royal LePage Home Price Data: Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q4-2021 Royal LePage Forecast Chart: rlp.ca/market-forecast-Q4-2021 Royal LePage Royalty-Free Media Assets: Royal LePage’s media room contains royalty-free assets, such as images and b-roll, that are free for media use.

● Media room: rlp.ca/mediaroom ● Royalty-free assets: rlp.ca/media-assets About the Royal LePage House Price Survey The Royal LePage House Price Survey provides information on the most common types of housing, nationally and in 62 of the nation’s largest real estate markets. Housing values in the Royal LePage House Price Survey are based on the Royal LePage Canadian Real Estate Market Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge. About Royal LePage Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 19,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.  

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Brent Roberts

Brent Roberts purchased his first piece of real estate at the young age of 18. He has since bought and sold over 100 homes throughout his investment career. His portfolio has included single family ho....

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