House Prices In Canada Are Set To Fall In 2023 & Here’s Where They’re Going Down The Most
The areas where prices are falling the most might actually surprise you! 👀
Trending Staff Writer
December 01, 2022, 08:45 AM
Houses in St. Catherine’s, Ontario.
With high inflation generally being hard on Canadian wallets this year, a bit of good news on the cost of housing in Canada is always welcome.
According to a new report by real estate company RE/MAX, Canucks can expect to see a decline in the cost of housing in Canada in 2023.
Released on November 29, the report predicts a decrease of 3.3% in the average home price across Canada next year.
This might not seem like a whole lot but when you look at specific markets, it does feel more hopeful, especially for those planning on becoming home-buyers in the near future.
The regions that are predicted to have the biggest drop in prices are Ontario and Western Canada, with lots of cities expected to become more affordable for buyers.
In Ontario, this includes places like Barrie (-15%), Durham (-10%), Thunder Bay (-5%) and, yes, even the GTA which is expected to see a decrease in home prices of 11.8% next year.
But these Ontario cities aren’t the only places where homes are expected to become cheaper.
The Vancouver region is expecting a decrease of 5%, with the prices in other B.C. cities like Nanaimo and Kelowna going down by 10%.
Fredericton is looking at a decrease of 3.5% next year, with other New Brunswick cities such as Moncton (-5%) and Saint John (-3.5%) in a similar boat.
However, every other major city in the Atlantic region, including Halifax and St. John’s, are actually expecting increases in 2023 though.
Of course, the anticipated reduction in percentage points can be a bit misleading and it’s important to remember that 10% off an already-elevated price may not amount to a whole lot.
But, it is an indication of where the housing market is and where it could be going.
According to RE/MAX, 60% of regions in Canada are expected to be “balanced markets” in 2023. This refers to the demand and supply of houses balancing out just right.
“It’s good [to] see the majority of markets moving toward more balanced conditions, which is typically defined by 45 to 90 days on market,” says Christopher Alexander, the President of RE/MAX Canada.
“This is a much-needed adjustment from the unsustainable price increases and demand we saw early in 2022.”
Of course, knowing where the market is going is only part of the battle. The Bank of Canada’s increasing interest rates will also be a big factor for many when it eventually comes to buying a home.
If you’ve been thinking about getting onto the property ladder, there are reports out there that will tell you exactly how much you need to make to afford to buy a home in Canada.
Good luck, buyers!
This article’s cover image was used for illustrative purposes only.