Feb 14, 2023
By Jane Brown
It’s good news for buyers, not so much for sellers.
Canadian home prices are expected to fall further this year, as the real estate markets continues to cool.
According to a report from Oxford Economics, the national home price decline in Canada is only halfway through its total drop, already down 14 percent since the February 2022 peak and will drop another 16 percent by the middle of 2023.
The report says there are various scenarios which dictate how the housing market will fare in 2023.
The researchers say if global supply chains improve and inflation eases, home prices could fall by 27 percent from the peak to the bottom, which is the best case scenario.
In the worst case scenario, they say if there’s a recession and a surge in defaults and insolvencies, the housing price could fall as much as 48 percent.
It’s worth noting that the Toronto Regional Real Estate Board is predicting a rebound for the housing market in the latter half of this year, with home prices and sales increasing after months of declines.
The average home price for the year is expected to reach $1,140,000, the Toronto Regional Real Estate Board (TRREB) said in its annual forecast, released Friday. That is higher than January’s average price of $1,038,668 but still 4-percent lower than last year’s average.
The board forecast 70,000 sales this year, 7 percent fewer than last year.
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