Toronto and its surrounding 905 cities have been at the top of the list of hot real estate markets for years. This often begs the question about when it could end. Surely at some point the bubble will burst and the GTA housing market will return to a pricing structure that is a bit more affordable for new buyers, right? The good news for owners is that 2022 is poised to provide more solid returns for home owners and real estate investors.
Many real estate professionals are predicting that the housing market will continue to hold steady and even rise throughout this year, which is good news for home owners, those who are looking to sell and investors who are looking to buy in soon.
Joining the real estate market in 2022
At AllinRealty, we view all of our clients as real estate investors – whether they’re buying their first condo to live in, or as an additional investment property to rent out or even re-sell. In all cases, we only partner with developers delivering great projects in key real estate markets (including Burlington, ON) where early, preconstruction access to prime units are accessible for our clients (learn more).
With the buzz surrounding the perpetually increasing housing prices, now might feel like an intimidating time to step into the real estate market. Regardless of whether you’re looking for an investment property, something you can flip and resell or want a home that you can live in yourself, now is a great time to buy into the market. Rumours abound that mortgage and interest rates are set to increase later on this year so acting now in the front end of 2022, is the best way to secure a good interest rate and maximize your investment potential.
While these increasing mortgage and interest rates may affect market activity in some areas, the GTA is generally fairly insulated against these fluctuations as it is an ever in-demand area. The drive for adults to become homeowners and the continued lack of properties on the market will help keep sales prices high, maintaining this seller’s market for another season.
The 2022 condo market will hold strong
Although there are some indications that the real estate market could face some shifts in 2022, overall, the market should hold pretty steady. Condos especially will hold their value and continue to be a great investment opportunity, whether you’re planning for a short term or long term pay off.
Foreign immigration previously slowed down by COVID
With most of the world on pause for the last 2 years, immigration has been forced to slow down considerably. Luckily things are beginning to open back up again and people are resuming their pre-covid travel plans. With immigration increasing again condos will be in demand and vacancies will be hard to come by.
Reduced supply putting strain on the market
When there is a shortage of homes available for buyers, prices are often pushed even higher. With the 2022 forecast predicting a shortage of homes of all sizes and styles, now is the perfect time to get into the real estate industry. Preconstruction condos are a great way to get your foot in the door while prices and availability are still on your side.
Canada and Ontario viewed as great places to live globally
While locally we know that our province and country are fantastic places to live, it’s encouraging to see that this sentiment is true from the outside as well. Canada is frequently seen a great place to live and work with Ontario the targeted destination of many. In 2021 alone we welcomed over 200,000 immigrants to Canada, with almost half of them settling in Ontario.
Popular university towns
The GTA is home to seven universities and four colleges, along with several vocational and faith-based post secondary institutions. This translates into nearly a million students registered for school, many of whom will be looking for a place to live. Condos that are located in safe neighbourhoods and near public transportation will be highly sought after, especially late in the summer months. This bodes well for condo owners who are interested in renting out their unit and creating an investment income that way.
Real estate remains a top 2022 investment option
When making a financial plan purchasing real estate is often a great way to invest money. With a decreasing inventory of quality detached homes, the condo market is more likely to see strong sales and increased value in the coming years. Buying a preconstruction or already built condo now can help you set yourself up for long term success as a homeowner and real estate investor, especially if the market continues on its current path.
