What Ontarians Should Watch Out For
All signs point to a “modest correction” of the Canadian housing market due to the ongoing recalibration triggered by higher borrowing costs, according to a new market update by Central 1.
The Bank of Canada increased its policy rate to 1% last month after dropping it earlier in the pandemic to catalyze economic growth. Future hikes through the coming months could send the rate to 2.5% by early 2023.
Fixed five-year mortgage rates have already risen from 1.7% at the pandemic low to 3.6% this month, and are expected to further increase to about 4.5%.
Source: https://dailyhive.com/vancouver/canada-modest-housing-correction-2022-real-estate
Key Facts
- Ontario has experienced record year-on-year growth in prices, for nearly all residential property types during the pandemic
- Changing lifestyles, immigration, investment, and shifting housing demographics have driven high demand for real estate in multiple cities in Ontario
- Interest rates are predicted to cool the housing market in Ontario throughout 2022, but not by much.
- Toronto, Brampton, and Mississauga remain some of the most popular places to live in Ontario at the start of 2022
Average Price Increases
The following summarizes the average price increase in GTA communities between the first quarter of 2021 and the first quarter of 2022:
- Brampton – 30.5 per cent
- Mississauga – 26.1 per cent
- Hamilton – 32.4 per cent
- Oakville – 28.2 per cent
- Oshawa – 29.4 per cent
- Pickering – 25.4 per cent
- Vaughan – 26.3 per cent
- Whitby – 34.2 per cent
- Richmond Hill – 24.7 per cent
- Markham – 22 per cent
- Ajax – 32.2 per cent