{"id":18890,"date":"2022-02-15T17:05:24","date_gmt":"2022-02-15T22:05:24","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=18890"},"modified":"2022-02-15T17:11:07","modified_gmt":"2022-02-15T22:11:07","slug":"crea-january-2022","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/crea-january-2022\/","title":{"rendered":"Competitive Canadian Market Spurs Big Price Gains to Start 2022: CREA"},"content":{"rendered":"\n

Buyers from Vancouver to Moncton can anticipate facing a strong seller’s market if they\u2019re looking to buy in today\u2019s market, according to the latest numbers from the Canadian Real Estate Association (CREA).

In their January 2022 release, CREA reports that the sales-to-new listings ratio shot up to 89.4% last month, just slightly below the record set last January of 90.2%. For context, the long-term average for this metric sits around 55%.

This means that across the country, new homes are disappearing off the market almost as quickly as they are listed – with almost 90% of the new homes being listed selling within the month. These conditions strongly favour sellers, leading to highly competitive buying conditions where bidding wars and offers well over the asking price have become the norm.

Related Read: Why this might be the best time in 2022 to sell your home<\/a>

These hot market conditions have continued to put a boil on housing prices in the country. The National Home Price Index Benchmark Price rose 28% year-over-year, bringing the average price across the country to $836,300. When compared to last month<\/a>, prices are up over $25,000 on average, while sales have remained relatively flat (up 1%) and new listings decline (down 11%).<\/p>\n\n\n\n

Industry Leaders are Optimistic for New Inventory this Spring<\/h2>\n\n\n\n

However, industry leaders are hopeful that with warmer weather will come a crop of new listings that could cool the pent-up demand of buyers who haven\u2019t been successful in getting into the market over the last few months. CREA\u2019s Senior Economist, Shaun Cathcart explains:

\u201cThe ideal situation between now and the summer would be that a huge surge of sellers come forward looking to sell in the spring 2022 market. If that were to occur, similar to 2021, we\u2019d likely see a massive number of sales take place which would get a lot of frustrated buyers into homeownership, and we\u2019d likely see some cooling off on the price growth side if those offers are spread across more listings. Those are all things this market needs. It really comes down to how many properties come up for sale in the months ahead.\u201d<\/p>\n\n\n\n

When it comes to buyers trying to navigate today\u2019s market, Zoocasa REALTOR Claudio Castro shares, \u201call the signs are pointing to this spring being a return to a more normal, seasonal real estate cycle where new inventory comes online after March Break. For my buyer clients today, my biggest piece of advice is to stay optimistic –\u00a0 I\u2019m hopeful that we will see more inventory come onto the market in the coming weeks. But, if you find something you love today, ultimately, the right house is the right house. You should still consider making a move if the right property comes along.\u201d\u00a0<\/p>\n\n\n\n

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Small Cities Continue to Lead The Pack in Terms of Price Growth<\/h2>\n\n\n\n

CREA\u2019s latest release shows that price gains have been strongest in smaller towns like Bancroft, North Bay, Kawartha Lakes, and Brantford Region observing year-over-year price gains of over 40%.

Here\u2019s an overview of the local real estate market in five of Ontario\u2019s most impactful areas:<\/p>\n\n\n\n

Greater Toronto Area<\/h3>\n\n\n\n

Toronto is feeling the inventory crunch just as much as any Canadian city, with active listings down to their lowest levels in more than two decades. <\/a>The national board reports that the average benchmark price crept up 33.2% year-over-year to $1,275,000 in January, making it now more expensive to buy in Toronto than in Vancouver. With 5,635 homes trading hands last month, CREA reports that transactions are down over 18% from last year, which many industry leaders attribute to the historically low levels of homes available for sale constraining the number of sales that can take place in the market.\u00a0<\/p>\n\n\n\n\n