Halifax home prices are set to see another spike in 2022.
Royal LePage released its annual Market Survey Forecast on Wednesday, which predicts our city will be among the top three in the country to see the largest increases.
The forecast expects aggregate Canadian home prices will rise by 10.5 per cent to nearly $860,000 by late 2022.
The aggregate price is based on a weighted model using median prices and includes all housing types.
Halifax is predicted to see a 10 per cent increase. That means a $472,000 home will soon cost more than $519,000.
Toronto and Vancouver will experience the largest spikes next year at 11 and 10.5 per cent.
2022 Royal LePage Market Survey Forecast
The real estate firm says the cost in our region is being driven by out-of-province demand, largely from Ontario.
“Halifax has approximately two weeks of available inventory. The chronic supply shortage is impacting sales volumes, which I expect will be lower in 2022, despite continued strong demand from buyers” says Royal LePage Atlantic Owner Matt Honsberger in a statement. “Out-of-province demand remains a main driver of price appreciation, and is expanding to areas outside of the city centre, including Annapolis Valley and other recreational regions a short drive from downtown.”
Honsberger predicts buyers will continue to be aggressive with their house hunts but believes some sellers will wait until the spring to put their homes on the market.
He says this could create an inventory boost in the new year.
“However, most sellers will also be looking to make a purchase in the same region,” Honsberger adds. “A significant number of new developments are currently underway on the outskirts of Halifax, including in Dartmouth, Elmsdale, Lantz and Bedford. But, completion will take at least 18 to 24 months.”
The 2022 forecast follows a record-breaking year as housing prices jumped by 21.4 per cent in 2021.
