Home prices in Canada are expected to fall in 2023

TORONTO-

A new report predicts that average home sales prices in Canada will fall 3.3% next year, with the biggest drops expected in Ontario and Western Canada, where some markets could see prices fall by 10 at 15%.

The Re/Max Canada report established the predictions using surveys of brokers and agents across the country. Home prices in Canada have fallen this year as the real estate market cooled amid higher interest rates that pushed up the cost of mortgages for borrowers.

According to Re/Max, 60% of housing markets in Canada are expected to be in a balanced position in 2023, but some markets are expected to experience larger price swings.

Prices in Kelowna, BC, Nanaimo, BC and Durham, Ontario are expected to drop 10% in 2023, while prices in Barrie, Ontario are expected to drop 15%.

Prices in the Greater Toronto Area are expected to fall 11.8%, while Greater Vancouver is expected to fall 5.0%.

Meanwhile, Calgary is expected to see a 7.0% increase in selling prices and Edmonton is expected to see a 3.0% gain. Halifax is expected to gain 8.0%.

This report from The Canadian Press was first published on November 29, 2022.