Hamilton realtor predicts 2022 housing market will remain high

A Hamilton realtor is encouraging first-time homebuyers to get into the market as soon as possible as he predicts housing prices will remain high in 2022.

Last year, home prices increased by more than 20 per cent. The Canadian Real Estate Association says the average price of a home across the country this year is expected to continue to rise by 7.6 per cent.

“We’re looking at some of the lowest inventory we’ve ever seen in history and some of the highest demand we’ve ever seen in history,” said Michael St. Jean, chief executive officer of Michael St. Jean Realty.

“Along with the highest levels of immigration we’ve ever seen since at least World War I or World War II, the current environment will likely continue.”

Since there are more buyers than homes on the market, he said sellers will receive multiple offers this year.

“Things are just off balance to a degree that we’ve never seen before,” St. Jean said.

This is why he recommended first-time homebuyers get into the market immediately. He said that the cost of a house has been increasing since the mid 90s.

“We don’t see that changing, we see it accelerating,” St. Jean said.

Another contributing factor to the rising home prices is the possibility of interest rates increasing.

As interest rates go up, though, St. Jean said the housing market may eventually moderate.