Will The Home Prices Go Up in 2022
Points to ponder over. One can attribute it to a number of factors.
When we talk about home prices, following factors may or may not play a role in the home prices. Just think over these points. This will give a better picture.
- Will there be more immigrants coming to Canada?
- Will students on study visa will go back home after completing their studies?
- Will students buy homes in the next 5 years?
- Right now, many students share and live together in a home on rent. Will it be another factor creating more demand for the homes?
- When any property comes in the market, more buyers put offer on it, but only one get the property. It means, remaining buyers still remain in the market.
- So as of now there are more buyers than the number of homes.
- Since the interest rates are low, there are more investors in the market. Those who bought their homes years ago and have equity sitting in their homes will always be there to invest and buy more homes.
- Even if the interest rates go up, rental demand will always be there. Unless immigrants/students go back, so interest rates going higher up may not affect.
- Buyers have started moving to high rise condos. After few years they will always be seeking an opportunity to move to single homes.
- Will Inflation, Pandemic or supple chain Issues affect the real market?
- Will the present rate of inflation can drive the homes prices low?
- Pandemic has affected many businesses and people quite their jobs. Can this be also a driving factor.
- Commodities prices have gone up.
- Gas prices have gone up by more than 40c since Jan 2020.
- Will Russian-Ukraine conflict can add more to gas prices?
- Can the rising gas prices drive the market in the time to come?
There could be many more unforeseen reasons which no one know. May be there is increase in mortgage interest rates.
If above factors are taken into consideration, if the home prices may come down becasue of any situation but overall home prices are likely to remain uppish from the long term prospective. Coming few months will give a better picture.