With a new year comes a fresh start and new possibilities. Although the pandemic continues, we look forward to recovery and a return to normalcy.
According to a recent report issued by the Conference Board of Canada, the post-pandemic world looks positive for Canada’s territories. While annual GDP growth in the NWT will be limited, there are some bright spots including several new mining developments, large construction projects, and an aging population which will increase the demand for health care services which should fuel employment growth in the non-commercial services sector.
Specific to real estate in the Canadian market, the Canadian Real Estate Association says that housing sales will moderate in 2022, however, prices aren’t expected to ease any time soon due to lower supply. We expect this to also be the case for Yellowknife with continued tight supply of housing available. There are some new real estate developments that are on the horizon which will contribute to the inventory and provide some more options in Yellowknife. West Bay luxury condominiums, consisting of 20+ units and located in the Tin Can Hill, will be move-in ready in 2022. In addition, approximately 200 rental units in a variety of locations is expected to begin construction in 2022.
As for mortgage rates, with inflation hitting an 18-year high in October 2021, the Bank of Canada is expected to respond with increasing interest rates. The market consensus on the mortgage rate forecast in Canada is that mortgage interest rates will increase by 1.25% in 2022, but of course only time will tell.
With a limited inventory of homes for sale and strong demand expected in the coming year, it should be a great time to sell. If you are considering selling or even buying, contact our team and we can share up-to-date information and our expertise to best meet your needs.
Happy new year and we look forward to serving you in 2022.
 Conference Board of Canada, June 28, 2021, Territorial Outlook report