Despite rate hikes, national home prices are seeing

VANCOUVER, BC, July 27, 2022 (GLOBE NEWSWIRE) — While interest rates have risen in recent months, the Canadian real estate landscape has continued to see price increases for the first six months of this year. Prices rose particularly in suburbs and smaller communities outside of metropolitan areas as more condominium owners seek homes outside of the pricey Greater Toronto Area and central Vancouver.

The sixth annual price-per-square-foot survey released today by CENTURY 21 Canada shows that real estate continued to be a strong market in the first half of the year, with secular growth holding up despite higher interest rates and concerns about what that will mean industry in the near future. While some markets have cooled after booming during the COVID-19 pandemic, overall prices remained elevated at the start of the year.

In its annual, nationwide study, CENTURY 21 Canada compared the price per square foot of homes sold between January 1 and June 30 of this year to the same period last year and prior years.

“We recognize the concerns some may have about interest rates, but the first half of 2022 showed growth in almost every regional market in the country,” said Brian Rushton, Chief Operating Officer of CENTURY 21 Canada. “The boom may be past its peak, but the trend is still towards higher prices, particularly in suburbs, where younger and first-time homebuyers are trying to escape competitive metropolitan areas after remote work has become more common. It will be interesting to compare the data we received from the first half of this year with the data we collect in 2023 to see how rising interest rates will affect the market over the next six months. “

After a consistently high level in January, the spring saw market-typical fluctuations, with most markets posting slight declines in June when the interest rate hikes took effect.