This is what experts say will happen with Toronto’s real estate market in 2022

Toronto saw record-breaking home price increases in 2021, but things look a little different for 2022.

The Toronto real estate market has made home buying inaccessible for millennials in the past 12 months, and unfortunately, most experts predict that house prices will continue to rise over the next year.

According to the Royal LePage Market Survey Forecast, Canadian home values ​​are expected to rise sharply again in 2022, albeit at a slower pace than 2021.

Just published: Royal LePage’s 2022 market survey forecast https://t.co/rCy0blGu8v

– Royal LePage Canada (@Royal_LePage) December 17, 2021

The GTA predicts that the total price (based on a weighted model with median prices and including all apartment types) for a home will increase 11 percent year-on-year to $ 1,256,500 in the fourth quarter of 2022.

The median price of a single family home is expected to increase 10 percent to $ 1,564,200 by the end of 2022, while the median price of a condominium is expected to increase 12 percent to $ 763,800.

Will the Canadian market cool down in 2022? The 🤔 @ REMAXca report suggests otherwise. https://t.co/BeLqLNURly

– RE / MAX (@remax) December 8, 2021

The real estate market in Ontario is expected to remain stable in 2022, according to the RE / MAX Canadian Housing Market Outlook. RE / MAX brokers predict that Muskoka will see one of the highest average sales price increases at 20 percent.

Mississauga, meanwhile, will see the largest increase in GTA at 14 percent, compared to Toronto’s predicted 10 percent increase.

So when should buyers start looking again? Some experts say the market will stay hot at the beginning of the year because there simply isn’t enough real estate to sell to meet demand and people will want to take advantage of the low mortgage rates.

“Supply will be a critical metric to watch as the New Year starts – especially knowing that January and February will be hotter than usual as buyers try to get a mortgage rate ahead of the expected hikes next year to secure “, says the CEO of Zoocasa. Lauren Haw, in Zoocasa’s Housing Market Forecasts 2022 report.

Looking ahead to 2022, here are our top predictions for #CanadianRealEstate. https://t.co/PUDH0IpG2K

– Zoocasa (@zoocasa) December 29, 2021

Some experts say the market will cool off in the summer.

“Things will slow down through July, especially August,” Nasma Ali, founder and broker at One Group, told Yahoo Finance Canada. “All the people who really wanted to move because of COVID, by then that will be the last batch, so to speak.”

Nobody has a crystal ball, however, and it’s hard to say what will happen in 2022.

“There are many factors coming into the market in 2022 that we have seen in the past create a great urgency for buyers to enter the market,” says Haw.

“Things like trying to set a mortgage rate before rates go up, choosing a home to weather tighter Omicron pandemic restrictions, or competing in an extremely low supply market are all factors on the table for next year and could help create a highly competitive real estate landscape with strong price growth. “