Price of a detached home in Vancouver expected to rise in 2022 to $1.8M
Posted December 15, 2021 6:53 am.
Last Updated December 15, 2021 9:47 am.
A forecast for 2022 from Royal LePage says Greater Vancouver will see the biggest jump in house prices in the country next year.
“Pent-up demand not addressed in 2021 is expected to continue through the normally quiet winter season and spill over into the spring market of 2022. In addition, the federal government’s plan to increase immigration levels will bring a surge of new demand, particularly in large urban centres,” the report reads.
Predictions suggest the biggest aggregate price increase for the Greater Vancouver area, forecast to increase 10.5 per cent year-over-year to $1,375,700.
“During the same period, the median price of a single-family detached property is expected to rise 12.0 per cent to $1,892,800, while the median price of a condominium is forecast to increase 8.0 per cent to $766,800,” LePage said.
Which is way above the Canadian average, where a single family detached home is expected to cost $827,000 in 2022.
An increase across the country of 11 per cent over 2021.
Those who have been unable to buy are expected to return to the market in the new year, ahead of an expected increase to interest rates.
“While Omicron appears certain to delay the inevitable, monetary policy will eventually tighten in the face of uncomfortably high inflation,” said Soper. “When policy makers signal that a rate hike is on the way, we expect a pull-ahead effect, with buyers rushing to market before borrowing costs increase materially. Those who have pre-qualified with lower mortgage rates will also be under time constraints to transact,” LePage said.
The chronic shortage of supply in the housing market continues to drive up prices higher and higher.
Most listings receive multiple offers, and many of them are sold without conditions.
Read more: Supply chain disruptions continue to impact Canada’s cost of living
Canada’s November inflation rate remained high, at 4.7 per cent, being blamed on supply chain issues and the pandemic.
#BreakingNews
Canada November Consumer Price Index climbs 4.7% y/y (est. up 4.7%)
-up 0.2% m/m
-Core CPI up 2.7%
-Gas, food and furniture prices all up y/y— Mike Eppel (@eppman) December 15, 2021
The impact of the recent floods in B.C. is also expected to impact the Canadian economy, but the full scope of the ramifications on the housing market specifically remains to be seen.
