2022 Ontario Housing Market Update and 2021 review.

RE/MAX HALLMARK ONTARIO HOUSING MARKET REPORT Surprising Booming Economy!

Tuesday, January 18 @ 10:30AM

Agenda 01

2021 Market Recap

02

Fastest Growing Buyers Segment

03

Shelter & Supply Chain Inflation

04

A Supply or Demand Problem

05

What’s The Fix? & 2022 Outlook

2021 Market Recap 1. Real estate markets soared by monetary stimulus.

2. Pent-up demand due to low interest rate & household savings.

3. Vaccinations and resurgence in economic growth.

4. Bank of Mom and Dad.

Performance by Market & Zero-Covid Policy

Canadian Employment Highlights Ø Worked from home 23.8% of labour force. Ø Core-aged aged 25 to 54, employment increased +2.3% hig her than in February 2020. Ø Employment increased in Ontario and Saskatchewan, while it declined in Newfoundland and Labrador. Ø Unemployment rate was 5.9%

Ontario 2021 Employment Snapshot

Ontario Real Estate Buyers

First Time Buyers Motivations

Fastest Growing Buyers Segment

Ø Investors owns 34.7% of homes built after 2016. Ø Investors owned 21.6% of total housing stock in 2020. Ø 1 in 5 homes are investor-owned and 1 in 3 in new homes. Ø 9.2% of condos owned by non-resident homeowners in 2020.

Investor Activity Across Canada

Mortgage Segment

Shelter Inflation

Canadian Housing Affordability Index (HAI)

A Supply Problem or It’s A Demand Issue Ø Excessively low interest rates incentivizing too much demand. Ø Immigration policies Ø Housing starts surged above 300,000 units in November. Ø Housing completions are at a record high. Ø Listings for existing homes are higher than before the pandemic.

55% Screen Shot 2022-01-16 at 5.39.10 PM

32% Bubble will burst– Say around 10%

7 in 10 Wants to own a property one day

8 in 10 Find it ot has become more difficult to purchase

62% Considered moving to smaller communities

Where Are Ontarians Moving?

Cost of Rent in Ontario

Mortgage Default Rates- Oct 31st, 2021

Ontarians Take Sides on Housing Market.

55% Rise by 10% or more

32% Bubble will burst– Say around 10%

7 in 10 Wants to own a property one day

8 in 10 Find it ot has become more difficult to purchase

62% Considered moving to smaller communities

81% Increase Since Q3 2020

55% Screen Shot 2022-01-16 at 5.39.10 PM

32% Bubble will burst– Say around 10%

7 in 10 Wants to own a property one day

8 in 10 Find it ot has become more difficult to purchase

62% Considered moving to smaller communities

LONDON Average Home Prices increased to $674,000

OTTAWA Average Home Prices increased to $716,000

Kitchener - Waterloo Average Home Prices increased to $842,000

Windsor Average Home Prices increased to $571,000

Hamilton Average Home Prices increased to $922,000

TOP 5 ONTARIO CITIES YOY GROWTH

Toronto 2021 Snapshot Freehold

Condo

28%

18%

Percent Change

Percent Change

$1.3M Jan-Dec

$712K Jan-Dec

Ottawa 2021 Snapshot Freehold

Condo

18%

12%

Percent Change

Percent Change

$710K

$399K

Jan-Dec

Jan-Dec

London - St. Thomas 2021 SNAPSHOT Freehold

Condo

26.7%

33%

Percent Change

Percent Change

$707K

$371K

Jan-Dec

Jan-Dec

Durham Region 2021 Snapshot Freehold

Condo

31%

21%

Percent Change

Percent Change

$947K

$560K

Jan-Dec

Jan-Dec

York Region 2021 Snapshot Freehold

Condo

17%

19%

Percent Change

Percent Change

$1.290M Jan-Dec

$667K Jan-Dec

Simcoe County 2021 Snapshot Freehold

Condo

24.4%

29%

Percent Change

Percent Change

$790K Jan-Dec

$605K Jan-Dec

Oakville 2021 Snapshot Freehold

Condo

21.2%

14%

Percent Change

Percent Change

$1.748M Jan-Dec

$822K Jan-Dec

RE/MAX Hallmark Vs Ontario Market Snapshot

108% Vs 101.33

$ 23,433

3 Days Faster

SP Vs LP

DOM

*Average price is $912,000 which is an additional $60,000 net to the sellers

RE/MAX Hallmark 2021 FUN FACTS Jan to Dec 2021

NUMBER OF SHOWINGS

TOTAL VOLUME

TOTAL TRANSACTIONS

361,692

+18.686B

+28,900

NUMBER OF TRAINING AND OFFICE MEETINGS

TOTAL PARTICIPANTS ON ZOOM

1,669

34,296

1 TRANSACTION EVERY

18 Minutes

Is Market Headed For A Repeat of 2017?

$

Housing Forcast

What’s The Fix? INTEREST RATE

IMMIGRATION POLICIES

SPECULATIVE & MORTGAGE POLICIES PROVINCIAL HOUSING & TRANSIT POLICY

2022 Market 01 02 03 04 05

Strong Growth in Condo Market.

Interest Rate Increases but Money Still Cheap.

Increase of Inventory , Possibly 10% drop in transactions but No significant drop in list price.

Provincial Election & Housing Policies.

Out of Major Urban Centers Remain the Main Driver. Time to Explore other Provinces.

QUESTIONS?

THANK YOU