2022 Market Report: It might be “Crazy” but we are still Confident

Last week we had the pleasure of listing a beautiful 2 storey detached home in a prestigious Burlington neighbourhood. We knew inventory was exceptionally low. We knew there were still many buyers out there who had not managed to acquire a home in 2021. And yet, we were still surprised when a day after listing the home we had booked over 100 showings. 

By the time offer day arrived we had confirmed 155 showings, starting as early at 630am and ending as late as 11pm without any of them overlapping. All the feedback was positive. Agents who called with questions sounded defeated. One agent said “can we just stop and have an auction on the front lawn right now?” Needless to say, our excitement and expectations were high. How many offers would we get? What kind of price would we see? 

When all was said and done our clients were thrilled with 32 offers and an exceptional selling price. 
While selling this home we talked with A LOT of agents and what became clear is that everyone feels the same way… the market is CRAZY. 

And yet, according to the most recent market report published by RE/MAX we still have confidence in this market. 59% of Canadian homeowners believe the market will remain steady in 2022. 8% of all homeowners plan to make a move this year. And, as a team, we are still talking with lots of buyers who are new to the market. Despite all the daunting stories out there, Canadians still feel real estate is an excellent investment and worth the effort to acquire. 

Market reports published by Maclean’s Magazine, RE/MAX and The Financial Post all say the same thing. The real estate market will continue to be strong in 2022. Relentless buyers, a lack of supply and low interest rates will be the fuel. While Royal Bank acknowledges a significant increase in housing starts in 2021, these efforts won’t make any difference this year or next as residential housing projects take years to complete. And while rumours around increasing rates might be true, analysts still say this isn’t likely to dampen the market much at all. RE/MAX Canada projects a 9.2% rise in prices across the country with some key areas in the GTA seeing closer to 20% (Burlington 17%, Oakville 7.5%, Hamilton 16%, Niagara 14%, Mississauga 14%).

These projections are particularly interesting when you consider the increases we saw in value over 2021. Burlington posted an average 24.5% appreciation in single family homes during this time (with Aldershot, Alton Village and Tyandaga as the biggest earners at nearly 30%). Other nearby markets also posted huge year-over-year gains in 2021: Oakville 21%, Hamilton 24%, and Niagara region 32%.

With the thousandth wave of this pandemic upon us, we can expect Canadians to continue to find their living environments problematic. We are going to move out, move up and move away. If you or someone you know is considering buying and/or selling in 2022, we encourage you to reach out sooner than later. 

Understanding this market takes some time and first hand experience. How do you win a house with 20 other offers? We know. We helped many people buy homes in 2021. But, the reality is, you might need to lose a couple houses to understand that for yourself. If you already own a property it is very important we evaluate it again and start making plans to prepare it. While any home will sell in this market, the preparation and presentation makes ALL the difference in what you will get from that sale. 

We wish you all the best in 2022 and hope to hear from you.

Erin, Julie and Kim