COVID-19 mandates and restrictions reversed the trend of urban neighbourhoods being the most popular in Canada, with buyers leaving larger, high-density cities for more affordable smaller markets, inside and outside of their home provinces..Look for more of the same in 2022..“Based on feedback from our brokers and agents, the inter-provincial relocation trend that we began to see in the summer of 2020 still remains very strong and is expected to continue into 2022,” said Christopher Alexander, president of Re/Max Canada..“Less-dense cities and neighbourhoods offer buyers the prospect of greater affordability, along with livability factors such as more space.”.Speaking on Western Standard’s Triggered program several weeks ago, Shane Wenzel, president of Shane Homes in Calgary, told host Cory Morgan lockdowns and working from home made people realize they needed more room, condo dwellers in particular, who wanted to add a backyard to their lifestyles..Phil Soper, president and CEO of Royal LePage expects the COVID-19 factor to continue..“Like a bad dream that disrupts your sleep for months on end, we ushered in 2022 with a fresh round of pandemic restrictions designed to combat a new wave of infections,” says Soper..“Asked to stay away from the workplace and unable to travel even locally for entertainment, thousands of Canadians have been redirecting their growing savings into improving living conditions, as the family home doubles as office, restaurant and schoolroom.”.Last year, major markets in Western Canada averaged a 37% increase in sales from 2021, led by Calgary with a massive 76% increase in sales, year-over-year, with sales and prices expected to increase by the end of 2022..Inter-provincial migration is expected to continue throughout the year, potentially impacting local market conditions, according to 53% of Re/Max brokers..Here’s the activity the brokers see for Western Canadian markets:.• While Edmonton didn’t enjoy the year-over-year sales increases recorded in Calgary, it fared quite well with a 48% increase. Both markets are expected to continue to be sellers’ markets, once again due to an influx of people to Alberta, especially from Ontario and British Columbia. RBC’s provincial outlook for Alberta says the province will lead all others in terms of economic growth in 2022, which should bode well for home buyers and investors alike..• Victoria, Nanaimo, Regina and Kelowna also welcomed buyers from other regions in search of larger properties and greater affordability, which is expected to continue to support demand and prices in 2022. The trend has increased demand for single-family homes, followed by condominiums..• Young couples drove much of the demand in the Winnipeg region, especially for one- and two-storey detached homes. Re/Max brokers in the city say the appeal of Winnipeg has less to do with affordability, and more with lifestyle shifts such as hybrid working environments..• While some buyers chose to leave the west’s largest city for suburban areas in British Columbia or outside the province, Vancouver/Greater Vancouver has remained a quality place to live, says Re/Max. The region continues to draw interest from Canadian and international buyers, a trend that is likely to grow this year in tandem with rising immigration. Vancouver/Greater Vancouver is expected to remain a seller’s market in 2022, providing inventory stays tight and current demand continues, according to Re/Max brokers in the area..While predictions are for healthy markets across Canada in 2022, there are problems, says Soper..“Everywhere, in our largest urban centres and in the nation’s small and medium-sized towns and cities, new homes are not being built fast enough to satisfy growing demand,” he says..“In addition to the slow and expensive regulatory processes that burden builders, construction has been hampered by pandemic-specific challenges, including labour shortages and the increased cost of construction materials as suppliers struggle with supply chain issues. Some developers have been hesitant to commit to new projects.”.Here are 2022 aggregate price* predictions from Royal LePage for markets it measures..Q4 2021 Q4 2022 (% increase).Greater Van. Area: $1,253,300 $1,384,900 (10.5%).Calgary: $576,800 $611,400 (6.0%).Edmonton: $428,400 $449,800 (5.0%).Regina: $360,100 $381,700 (6.0%).Winnipeg: $357,200 $378,600 (6.0%).*the average of all home types combined.Myke Thomas is a reporter and columnist with the Western Standard
COVID-19 mandates and restrictions reversed the trend of urban neighbourhoods being the most popular in Canada, with buyers leaving larger, high-density cities for more affordable smaller markets, inside and outside of their home provinces..Look for more of the same in 2022..“Based on feedback from our brokers and agents, the inter-provincial relocation trend that we began to see in the summer of 2020 still remains very strong and is expected to continue into 2022,” said Christopher Alexander, president of Re/Max Canada..“Less-dense cities and neighbourhoods offer buyers the prospect of greater affordability, along with livability factors such as more space.”.Speaking on Western Standard’s Triggered program several weeks ago, Shane Wenzel, president of Shane Homes in Calgary, told host Cory Morgan lockdowns and working from home made people realize they needed more room, condo dwellers in particular, who wanted to add a backyard to their lifestyles..Phil Soper, president and CEO of Royal LePage expects the COVID-19 factor to continue..“Like a bad dream that disrupts your sleep for months on end, we ushered in 2022 with a fresh round of pandemic restrictions designed to combat a new wave of infections,” says Soper..“Asked to stay away from the workplace and unable to travel even locally for entertainment, thousands of Canadians have been redirecting their growing savings into improving living conditions, as the family home doubles as office, restaurant and schoolroom.”.Last year, major markets in Western Canada averaged a 37% increase in sales from 2021, led by Calgary with a massive 76% increase in sales, year-over-year, with sales and prices expected to increase by the end of 2022..Inter-provincial migration is expected to continue throughout the year, potentially impacting local market conditions, according to 53% of Re/Max brokers..Here’s the activity the brokers see for Western Canadian markets:.• While Edmonton didn’t enjoy the year-over-year sales increases recorded in Calgary, it fared quite well with a 48% increase. Both markets are expected to continue to be sellers’ markets, once again due to an influx of people to Alberta, especially from Ontario and British Columbia. RBC’s provincial outlook for Alberta says the province will lead all others in terms of economic growth in 2022, which should bode well for home buyers and investors alike..• Victoria, Nanaimo, Regina and Kelowna also welcomed buyers from other regions in search of larger properties and greater affordability, which is expected to continue to support demand and prices in 2022. The trend has increased demand for single-family homes, followed by condominiums..• Young couples drove much of the demand in the Winnipeg region, especially for one- and two-storey detached homes. Re/Max brokers in the city say the appeal of Winnipeg has less to do with affordability, and more with lifestyle shifts such as hybrid working environments..• While some buyers chose to leave the west’s largest city for suburban areas in British Columbia or outside the province, Vancouver/Greater Vancouver has remained a quality place to live, says Re/Max. The region continues to draw interest from Canadian and international buyers, a trend that is likely to grow this year in tandem with rising immigration. Vancouver/Greater Vancouver is expected to remain a seller’s market in 2022, providing inventory stays tight and current demand continues, according to Re/Max brokers in the area..While predictions are for healthy markets across Canada in 2022, there are problems, says Soper..“Everywhere, in our largest urban centres and in the nation’s small and medium-sized towns and cities, new homes are not being built fast enough to satisfy growing demand,” he says..“In addition to the slow and expensive regulatory processes that burden builders, construction has been hampered by pandemic-specific challenges, including labour shortages and the increased cost of construction materials as suppliers struggle with supply chain issues. Some developers have been hesitant to commit to new projects.”.Here are 2022 aggregate price* predictions from Royal LePage for markets it measures..Q4 2021 Q4 2022 (% increase).Greater Van. Area: $1,253,300 $1,384,900 (10.5%).Calgary: $576,800 $611,400 (6.0%).Edmonton: $428,400 $449,800 (5.0%).Regina: $360,100 $381,700 (6.0%).Winnipeg: $357,200 $378,600 (6.0%).*the average of all home types combined.Myke Thomas is a reporter and columnist with the Western Standard
