Being able to predict trends in the real estate market, especially residential real estate, in Canada can pose a bit of a challenge, a challenge which has only been amplified over the past few years with the rise of the global COVID-19 pandemic. As new restrictions have been introduced and changes have been implemented to our understanding of modern living, trends in residential real estate have reflected this tumultuous journey.
As someone with ample experience navigating such unpredictable shifts in the landscape of Canadian businesses, Simon Kronenfeld is a master of adapting to new sets of practices and expectations, whatever they may be, with every new curveball that gets thrown towards Canada’s professional markets. Managing a flourishing business for over a decade, he understands the nuances of how to overcome such challenges in order to emerge wiser and stronger than before.
2021: A Year in Review of Canada’s Residential Real Estate Market
As the pandemic enters its third year in Canada, the country’s residential real estate market has continued to reflect these turbulent times. According to the Canadian Real Estate Association, 2021 has been the “busiest year ever for Canada’s housing market”, with average selling prices for homes across the country rising to record highs well beyond those before the pandemic. Selling prices for residential buildings across Canada have risen 18% compared to those of 2020, with Ontario and British Columbia continuing to be the two most expensive provinces in the housing market. The cities of Toronto and Vancouver, leading these trends in growth for both provinces, reflect these trends, with Toronto maintaining the national average of an 18% rise in selling prices, and Vancouver close in second with a 14% increase.
In the face of this rapid growth, however, mortgage rates across Canada have remained relatively stable, with updates to the CMHC’s national policies allowing mortgage insurance services to become more accessible, and applications less strict. Meanwhile, in a somewhat stark contrast, policies introduced through the Bank of Canada have dramatically lowered interest rates, leading to profound surges in mortgage debt for households across the country.
Predictions for Canada’s Residential Real Estate Market in 2022
While being able to confidently predict market trends in Canadian residential real estate, particularly in the midst of an ongoing pandemic, can be a risky endeavour, there are still some prominent theories as to what the impending year of 2022 will hold. As the market continues to whether the tolls of modern living, many experts believe that the Bank of Canada will respond by challenging real estate price levels by tightening mortgage requirements and financial policies to adjust for economic pressure, resulting in a plateau in market prices towards the latter half of the year, as opposed to the former. With the number of residential real estate transactions reaching a new high in 2021, the Canadian Real Estate Association forecasts an increase in corresponding prices of up to 5.6%, with residential sales falling by an estimate of 12%.
The Canadian public, however, carry a slightly different view. Nearly half of Canadians – 49%, in fact – believe real estate to be a strong investment option going into 2022, and expect the market to remain steady.
With experience in founding and managing a successful business that has seen many interactions with Canada’s real estate market and its trends, Simon Kronenfeld is an advocate for being prepared for whatever unexpected trends any market may bring, while also having a plan for action in the face of any of these possibilities. Preparation in any industry is key, and with a diverse set of skills and experiences, he puts his knowledge into practice by making the best out of whatever trends he witnesses in his professional expertise.