Canadian Real Estate was an extremely hot topic in 2021 and 2022 is anticipated to be similar and proving the same thus far. Western Canada, including Regina Saskatchewan, experienced increased activity from out-of-province buyers looking for more affordable real estate and larger properties. This has affected and continues to affect the demand and prices for 2022. The Canadian Housing Market Outlook Report has recently reported that the trends that began in Summer 2020 are expected to continue throughout 2022.
Local Trends
The average sale price in 2021 was $323,000 (through January 1-October 31) and the market was highly favourable to sellers. With low inventory and increased buyers, this continues to be a seller's market but is expected to regain somewhat of a balance in 2022. According to the 2022 RE/MAX Housing Market Outlook Report, the forecasted average sale price for 2022 is estimated at $334,305, a 3% increase.
2021 saw a 9% increase in the number of sales over 2020 but with low inventory, the forecasted number of sales is estimated to increase only 2.5% in 2022.
Canadians are aware of the value and investment potential within each market and the demand for single-family detached homes will continue to see an increase in Regina as well as other regions such as Kelowna, Victoria and Nanaimo.
More and more Canadians are moving away from urban centers and into suburban areas which are seeing slightly fewer price increases but remaining a hot market and still favourable to sellers. Throughout 2022, this will notably increase the demand.
National Trends
Based on an online survey, 62% of Canadians own a home, and of those 59% are confident that the housing market will remain steady throughout the year. Of those 62%, only 8% plan to sell or move up in the market this year which will have a direct effect on inventory and pricing.
21% of Canadian homebuyers in 2021 were forced into considering recreational properties after nearby urban center’s prices were too high. Another factor for Canadian homebuyers is their carbon footprint as 53% of Millennials expressed a desire to buy an eco-friendly home. With these two contributing factors, the push to expand their housing search to rural areas increases significantly to achieve what they desire within their budget.
The market challenges have impacted local markets across Canada but despite that many Canadians are hopeful for investment opportunities. As we recognize the potential, its encouraging to see Canadians investing in Canadian Real Estate even during a global pandemic. Real Estate has proven to increase over the last few years and 2022 is going to be no exception according to the Canadian housing market outlook.
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