The real estate market in Waterdown and Burlington over the past 18 months can only be described as red hot.
Prices in the area increased by 27 per cent from November 2020 to November 2021, bringing the average sale price to $911,673, according to the Realtors Association of Hamilton-Burlington.
The question many home sellers and buyers are asking is what is in store for 2022?
“We are anticipating a strong market in real estate in 2022, though likely not with the same massive increases in home values,” says Drew Woolcott, broker and team lead of Woolcott Real Estate.
“The growth in the past year is difficult to sustain, and there are some factors at play that should help slow things down a little bit,” says Woolcott.
Woolcott cites the projected Bank of Canada overnight rate increases, potentially moving from 0.25 today to 1.5 per cent by the end of 2022, and the fundamental issue of supply not being resolved within the next twelve months.
“Another thing that adds some uncertainty is when, or if, the proposed Liberal policies that are meant to slow down the market and lend a helping hand to first time buyers will take place.”
With all these factors considered, Woolcott predicts the average home price in the Burlington and Waterdown areas will increase by 10 to 12 per cent. He also anticipates that the number of actual transactions will be down by the same percentage.
“The biggest issue affecting the real estate market right now is supply,” says Woolcott.
According to RBC, 2021 had the largest number of housing starts since 1977.
However, Woolcott points out that this will help remedy the situation in 2024 and beyond, but not right now. Even if the government were to loosen restrictions on building and density, it would not be an instant solution.
“If you are looking to purchase a home in the next year, it will still be tight market. I recommend working with an agent who is experienced in tough negotiations and is well-versed in the market you are purchasing in to come out on top in 2022.”
