Here's What Homebuyers Can Expect In The Canadian Housing Market In 2023, Experts Say
There could soon be an uptick in new listings. 🏠
Houses in Ottawa, Ontario. Right: The Toronto skyline.
Purchasing real estate in Canada may sound daunting, especially for first-time homebuyers. But what will the Canadian housing market look like in 2023?
If you're one of the many Canadians looking to find a place of their own, real estate experts have predicted what the future holds for Canada's housing market, and there are certain trends buyers will want to take note of.
Experts at Zoocasa have shared their predictions for what homebuyers can expect for spring 2023.
As noted in a report on Monday, housing prices in Canada fell in most markets over the winter, but "month-over-month price declines" are getting smaller and sales are increasing across the country.
One notable trend in the housing market, says Zoocasa, is low supply. This was seen on a national level — in 2022, Canada was facing a "severe supply shortage," with the low amount of active listings contributing to bidding wars and elevated prices.
Specific markets have also been affected, like Toronto's housing market, which saw new listings at a 20-year low in February, according to CP24.
However, real estate experts say they are expecting this to shift.
"I predict an upswing in new listings in urban centres, where sellers have been holding back from listing for the past year," said Lauren Haw, Zoocasa's CEO.
Investors will sell
Another trend predicted by the platform is that more investors will be looking to sell their properties as high mortgage rates continue to take a toll.
Despite long-term rates falling, the rates are "still significantly higher than last year," and many investors may be actually losing money because of high mortgage payments.
"In 2023, the rent increase limit is 2.5% in Ontario, and in British Columbia it's only 2%, meaning many landlords are unable to cover their costs," says Zoocasa.
For buyers, this means that as investors become sellers, more listings may come to the market as landlords end up with no choice but to sell.
The market will be more 'balanced'
Investors looking to sell, and more new listings in urban markets, combined with falling interest rates will "help create more balanced market conditions," says Zoocasa.
In other words, if you've been waiting to buy, this could be your chance.
"This should be an ideal time for buyers to come to market," says the real estate platform.
Another pro for homebuyers, Zoocasa predicts that there will be a continued trend of "homes that need work or have negative aspects, such as being located on a busy street or not having parking" sitting on the market.
"This will give fixer-uppers less competition and could also give buyers the opportunity to negotiate a more favourable price," it says.
This could especially be good for first-time homebuyers or newcomers, as the report notes.
As for where to buy, a report from Zoocasa in March detailed the housing markets in Canada where the average home price falls below the national average, with 14 out of 20 markets meeting this mark.
Those who are first-time buyers will also want to take note of Canada's recently launched Tax-Free First Home Savings Account, a new registered plan meant to help Canadians save money towards their first home.
In its 2023 budget, the federal government confirmed that institutions would start offering FHSAs to Canadians as of April 1, 2023.
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