Home prices in Canada are expected to fall in 2023 and here’s how it will compare to the pre-COVID era
The Canadian housing market has been down lately, but new analysis suggests prices could fall even more than expected.
According to the Montreal financial company Gardensthe cost of a home in Canada is expected to fall by 23% between February 2022 and December 2023.
This is a major drop from the housing expert’s earlier forecast of a 15% decline over the same period.
But, even with that, prices are unlikely to drop to pre-pandemic levels, especially in cities like Toronto and Vancouver.
Experts call this a “correction” from the heavily inflated house prices we’ve seen over the year, but not a complete “equilibrium”.
While this is good news for those looking to buy, some locations in Canada will see a different correction over the next few months depending on how low their potential market is.
The provinces that have seen the highest inflation in housing costs during the pandemic – New Brunswick, Nova Scotia and Prince Edward Island – will see the steepest declines as we approach Winter.
Estimates suggest that prices could drop as much as 29% in New Brunswick, 27% in Nova Scotia and 25% in PEI.
Major markets like Toronto, Vancouver and Montreal will likely start to experience a slight decline as well, but it will by no means be as much as is expected in Atlantic Canada.
In addition, Desjardins estimates that the price will fall by 22% in British Columbia and 24% in Ontario.
Overall, the report says this could mean a reintroduction of affordability to the Canadian housing market.
And, if this continues, they even suggest that the Bank of Canada may begin to roll back some of the high interest rates it has imposed to fight inflation.
There has been a full-scale battle to try to reverse the ever-escalating rate of inflation that has plagued Canadians since January.
Although interest rates have been raised in response to this, these increases have also had an impact on the wallets of Canadians, many of whom are worried about the effect this could have on their mortgages and daily expenses.
The cover image of this article was used for illustrative purposes only.