Price of homes in Canada expected to rise by 9.2 percent in 2022

The price of homes in Canada will rise by 9.2 percent in 2022, according to RE/MAX's housing report.

The steepening cost of housing is already somewhat of a crisis. This was made worse by the pandemic, however, interprovincial relocation will only further increase costs.

The shortage of supply in housing is also a significant factor behind this issue. The 9 percent rise is expected to be felt nationwide.

Despite this, real estate remains a top investment choice for many Canadians. 49 percent of Canadians expect the housing market to remain steady in the next year.

Calgary and Edmonton will feel this rise in housing most significantly, as people move to Alberta from Ontario and British Columbia. Again, there is not enough of a supply to combat the demand.

A few days ago, a federal bank regulator gave a stark warning about the state of the Canadian economy, saying that any decline in housing prices could flatten Trudeau's economy.

Currently, mortgage debts are equivalent to over 80 percent of Canada's economy. This means that a drop in housing prices could have severe implications for the entire country.

Trudeau's Department of Finance has repeatedly dismissed the chances of a Canadian housing crash.

"A long-term trend towards growing household indebtedness persists and may indicate vulnerability in the Canadian economy and the financial system," said the bank regulators' annual report.