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Home values have increased exponentially and prices are expected to continue to rise throughout 2022 and even the prospect of higher interest rates is not expected to slow the trend. On March 2nd the Bank of Canada raised its benchmark interest rate to 0.5 per cent, a move that’s expected to be the first of a series of small rate hikes this year.
“We finished 2021 on an unusually strong note,” said Royal LePage President and CEO Phil Soper. “The winter has been an extremely active one … and we expect that to continue into the spring.”
We’ve seen a greater interest in single family detached properties as our homes now double as offices, restaurants and classrooms, and the lack of supply continues to push prices higher. By the end of 2022 Royal LePage is expecting an increase of 10.5 per cent year-over-year (typical long-term growth is around five or six per cent annually).
The question on everyone’s mind, of course, is will supply continue to be overwhelmed by demand as it was last spring? Hopefully we will see a return to a more balanced market over the coming months as more sellers come to market. Immigration remains one of the largest drivers of buyer demand and it is expected to be at or near record levels in 2022.