What’s more, the gravity-defying growth has been consistent across virtually every segment of the market, with urban condominiums bouncing back after experiencing a lull in 2020, to the spike in single-detached activity in suburban and rural communities.
It is no secret that investors have become more active within the Canadian real estate market over the last several months.
Recently speaking in front of the Ontario Securities Commission , Bank of Canada deputy governor Paul Beaudry noted that a “sudden influx” of investors supported the rapid price gains in 2021.
In the Ontario housing market, for example, a Teranet report revealed that investors account for more than a quarter of the province’s homebuyers, lifting prices even higher, especially in North America’s fourth-largest city: Toronto.
“On a positive note, actual urban housing starts were 21 per cent higher in 2021, adding much-needed supply.
Industry observers and financial experts purport that a rising-rate environment generally deters investors.
With that being said, until the central bank raises rates to where they were before the coronavirus pandemic, investors could continue competing with first-time homebuyers for scarce supply, and successfully outbid them for these residential properties.
According to the RE/MAX 2022 Canadian Housing Market Outlook Report, average residential real estate prices are expected to increase 9.2 per cent nationwide this year.
“Canadians recognize the value and investment potential in their homes.
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