Looking back on this year, it started much like 2021 had finished with demand on fire. With the increase in interest rates in spring buyer demand started to slow and valuations started to decrease. Creative deal making, where vendor take-back mortgages were used as the main tool to bridge the gap between price expectations.
- Since there were so few sales, price per suite and cap rates remained virtually flat at $197,446 and 3.81% respectively.
- Rental fundamentals are stronger than ever with rents moving up 23.5% year over year to an average of $2,332 for 2-bedroom units.
- With new construction starts down by 33% to 2215 in 2022 there will be further stress on the affordability crisis in housing. Less suites in the market will keep vacancy rates low and rental rates rising.
- We should see more transactions and sales volume in the year ahead as buyers and sellers find the direction that they have been looking for in 2022.