Canada's Home Prices Are Set To 'Rise Strongly' In 2022 & Single-Family Houses Could Top $900K

It's predicted that Canada's home prices could soar next year thanks in part to pent-up demand and the median cost of a single-family house could reach more than $900,000.

According to the new Royal LePage Market Survey Forecast released on December 15, home values in Canada are expected to "rise strongly" in 2022 but at a slower pace compared to 2021.

The aggregate price of a home in Canada is set to go up 10.5% year-over-year to $859,700 next year.

Also, the median price of a single-family detached house is projected to increase 11% to $918,000 while the cost of a condo is predicted to rise by 8% to $594,000.

Royal LePage has cited pent-up demand from people who weren't able to buy a home in 2021 along with the "growing need" for more properties as the reasons for the increases.

It said that these factors put upward price pressure on the market that's already dealing with a supply shortage.

Locally, the greater areas of Toronto and Vancouver are expected to see the highest aggregate price increases at 11% and 10.5% respectively.

The Greater Toronto Area is the only region in Canada where condo price increases could overtake the rising costs of detached homes as the figure is forecast to go up by 12% year-over-year in 2022.

A report from the National Bank of Canada laid out how much money you need to be making to afford a house in cities across the country, with people in Toronto and Vancouver needing to earn over $200,000 annually and save for decades to get a house.

While it might not seem like it, a recent ranking actually found that Canada is one of the most affordable places in the world to buy a home.