New year, new home? Real estate continues to be a hot topic in Toronto, especially if you’re thinking of buying or selling. If you’re eager to see what’s on the horizon for housing, here’s what you can expect in 2022.
New pandemic regulations
Though restrictions are in place again, as essential services, real estate brokerages can continue to operate with certain limitations. View the full list of new health measures here.
- Open houses: Open houses are not permitted. In-person real estate showings can happen by appointment only and must follow all public health rules and guidelines.
- Face covering/masks: Anyone entering a business or real estate showing must wear a face mask/covering at all times.
- Cleaning/disinfecting: Equipment, washrooms and other common areas must be cleaned regularly and disinfected.
Prices expected to rise
Don’t count on the market cooling dramatically in 2022. Due to low supply and historically low-interest rates, home prices are expected to continue rising—though not as drastically as in 2021, when the average selling price jumped 19% from the previous year. The Canadian Real Estate Association (CREA) predicts this average will rise 5.6% in 2022.
Uncertainty
While there’s no anticipated price drop for buyers, some experts believe that if the Bank of Canada begins to raise the interest rate in April as has been hinted, there could be an effect on the market. However other factors, including the state of the pandemic and employment, mean uncertainty at this point.
Increasing rent
Though the pandemic did offer a bit of relief in the rental market, especially in Toronto’s downtown core, rent has returned to pre-pandemic rates with the average Toronto one-bedroom costing $2,040 per month—and prices will continue to rise. The Ontario Government also froze rental increases until December 2021, meaning landlords can raise rent by 1.2% in 2022.
Suburban sales
One benefit of the pandemic? It seems remote work is here to stay in some capacity. Less commuting makes moving to the suburbs more attractive than ever, and sales in suburban markets will only continue to increase. In fact, GTA home sales reached record prices at the end of last year.
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