Royal LePage Real Estate Services adjusted the forecast for the 2022 national home price forecast down to 5 per cent, noting that there’s a softening in the Ontario and B.C. markets.
Forecasted aggregate prices in Regina, however, remain unchanged, and are expected to rise by 7 per cent by the fourth quarter of 2022 compared to the same quarter last year.
“We don’t have the same underlying factors that the Toronto and Vancouver markets have gotten. This runaway system hasn’t really applied to us,” said Mike Duggleby, broker and owner, Royal LePage Regina Realty.
Regina’s aggregate prices for the second quarter rose by 9.8 per cent year-over-year to $375,600.
Single detached homes saw the median price increase 12.1 per cent to $409,000.
Median prices for condominiums saw a smaller bump to a 4.1-per cent increase, at $204,000.
Duggleby said that interest rates are rising significantly compared to six months ago, but added that it’s still a historically low rate.
“We have been spoiled by ultra low interest rates for the last couple of years. That 5-6 per cent range is normal.”
He noted that some buyers have been purchasing properties even though it may not be exactly what they’re looking for.
“Buyers are reacting to the current uncertainty in the market. In the last month, we’ve seen some frenzied buying among those with mortgage rate holds set to expire shortly, or those looking to transact prior to further expected rate hikes.”
“While interest rates remain historically low, these rapidly rising rates coupled with record high home prices are proving stressful for many of today’s first-time buyers,” added Duggleby.
He said that sales in the second quarter are less than they were last year, but inventory is up.
“The supply of homes is increasing and I expect this trend will continue through the summer months. However, inventory remains well below historic norms. In some cases, although fewer than earlier in the year, well-priced properties in popular neighbourhoods are still selling in multiple-offer scenarios.”
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