2022 Housing Forecast Recap
It is our pleasure to help our customers and friends with a smooth and exciting transition to owning their new home. The following is from the presentation of three keynote speakers for the REALTORS® Association of Edmonton.
Benjamin Tal, Deputy Chief Economist for CIBC World Markets Inc.:
2022 will be a year of transition. Economically speaking, we may see a weak first quarter, better Spring, and a strong Summer. I think we'll see a decrease in spending on goods and an increase in spending on services.
The supply chain story will not be as dominant this time next year as it is right now. 47% of new immigrants in 2021 came from Canada - students, non-permanent residents. It was a matter of a change of status and not a change of address.
Gifting is becoming a major issue impacting your business (real estate). In Vancouver, the average amount of a gift given is $340,000. You cannot just look at income, you need to also look at gifting.
I think the Bank of Canada will slow down the increase of interest rates, hence it will rise more slowly than anticipated to limit the shock to the market.
Paul Gravelle, 2022 Chair:
For Average Single Family Detached Homes Sale Prices, we expect to see them go up to $472,000 in 2022 which is a 3.1% increase compared to 2021. For Condominiums, we are looking at an average sale price of $234,000, a 1.4% increase compared to 2021. Finally, for Duplex and Rowhouse pricing, we expect the average price to hit somewhere around $362,000 – which represents a 3.1% increase compared to 2021.
For 2022, we expect a possible 12.9% drop in Single-family sales compared to 2021 – at 13,400. For condos, a 6.9% drop in overall sales at 5,300, while Duplex and Rowhouses may see about a 10.2% drop in sales for 2022 – at 2,700.
For new listings, we expect to see about a 4.1% decrease overall in Single Family listings in the coming year when compared to 2021. For Condos, a 4.3% decrease in new listings while we expect a larger drop for Duplex/Rowhouse category at 3,600 new listings – about a 7.7% decrease.
Felicia Mutheardy, Edmonton Economic Update
The labor market entered the new year on a much stronger footing.
Looking ahead to 2022, challenges faced by the goods-producing sectors will start to decrease.
Housing starts in 2021 came out just above 2020.
Housing starts are expected to pull back in 2022 across all categories due to supply chain issues, raising interest rates, and the cost of building supplies.
If you have any additional questions or would like my thoughts on the market conditions please, reach out!
It is our pleasure to help our customers and friends with a smooth and exciting transition to owning their new home. The following is from the presentation of three keynote speakers for the REALTORS® Association of Edmonton.
Benjamin Tal, Deputy Chief Economist for CIBC World Markets Inc.:
2022 will be a year of transition. Economically speaking, we may see a weak first quarter, better Spring, and a strong Summer. I think we'll see a decrease in spending on goods and an increase in spending on services.
The supply chain story will not be as dominant this time next year as it is right now. 47% of new immigrants in 2021 came from Canada - students, non-permanent residents. It was a matter of a change of status and not a change of address.
Gifting is becoming a major issue impacting your business (real estate). In Vancouver, the average amount of a gift given is $340,000. You cannot just look at income, you need to also look at gifting.
I think the Bank of Canada will slow down the increase of interest rates, hence it will rise more slowly than anticipated to limit the shock to the market.
Paul Gravelle, 2022 Chair:
For Average Single Family Detached Homes Sale Prices, we expect to see them go up to $472,000 in 2022 which is a 3.1% increase compared to 2021. For Condominiums, we are looking at an average sale price of $234,000, a 1.4% increase compared to 2021. Finally, for Duplex and Rowhouse pricing, we expect the average price to hit somewhere around $362,000 – which represents a 3.1% increase compared to 2021.
For 2022, we expect a possible 12.9% drop in Single-family sales compared to 2021 – at 13,400. For condos, a 6.9% drop in overall sales at 5,300, while Duplex and Rowhouses may see about a 10.2% drop in sales for 2022 – at 2,700.
For new listings, we expect to see about a 4.1% decrease overall in Single Family listings in the coming year when compared to 2021. For Condos, a 4.3% decrease in new listings while we expect a larger drop for Duplex/Rowhouse category at 3,600 new listings – about a 7.7% decrease.
Felicia Mutheardy, Edmonton Economic Update
The labor market entered the new year on a much stronger footing.
Looking ahead to 2022, challenges faced by the goods-producing sectors will start to decrease.
Housing starts in 2021 came out just above 2020.
Housing starts are expected to pull back in 2022 across all categories due to supply chain issues, raising interest rates, and the cost of building supplies.
If you have any additional questions or would like my thoughts on the market conditions please, reach out!