Canada’s real estate prices are forever on the rise, and it seems that 2022 will be no different. The Canadian Real Estate Association (CREA) predicts that Canada’s average home price will soar even higher next year thanks to a “record low” supply of listings.

The CREA says there are several factors that are fuelling housing demand in Canada right now and over the past several years. Those include record levels of immigration, low interest rates, and an “increasingly middle-aged Millennial cohort” — we’ll try not to be offended by that reminder.

And COVID-19 only “supercharged” the already-hot housing market, with “everyone trying to find the right place to ride out the pandemic,” according to the report.

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This caused a historically large spike in average home prices this year. The CREA predicts that average costs will rise by a whopping 19.9% in 2021 to $680,000, which “reflects the unprecedented imbalance of supply and demand” of Canada’s real estate landscape.

Believe it or not, next year’s home prices are expected to top $700,000. The report forecasts a rise of 5.6% on an annual basis to roughly $718,000 for the average home in 2022.

At the same time, the number of home sales is set to fall by just over 12% across the country to around 577,000 units. Even though the race to buy a home during the pandemic likely won’t be as strong next year, the lack of supply will still drive prices up pretty significantly.

“The good news is that the urgency and frenzy of earlier in 2021 have started to fade and the market has settled down a bit, at least in a relative sense,” the report says.

Even in the priciest cities like Toronto, there are still pockets where homes are still relatively cheap. And you can always look outside of the big city at smaller communities, where the average price of real estate is still well below $500,000.