House Prices In Canada Are Expected To Peak Soon & It Might Be Worth Waiting To Buy
Next year could look better for the Canadian homebuyer! 🏠
An aerial view of a Montreal neighbourhood. Right: A line of House For Sale Signs.
House prices in Canada have trended up over the last few years and this spring could actually see a peak in the cost of a home.
But then, after that, experts are predicting a decline in property prices as we make our way through 2023.
According to a report the Royal Bank of Canada (RBC), the price of housing is still on its way up, but there could be some hope for the prospective homebuyer into next year.
Due to the recent increases in the federal interest rate — and the ones expected to come — that are intended to 'cool off' the economy, housing in Canada could see some "downward pressure" across the board.
This means that prices are actually expected to drop.
Places expected to see the biggest impact of this downward trajectory are the country's two most expensive cities to buy a home: Vancouver and Toronto.
But, other pricey markets will also see effects including cities in the Greater Toronto area and ones outside of Vancouver.
More affordable markets, like in Alberta for example, will see less of this impact as they experienced a "a prolonged slump before the pandemic."
But, if you're selling a home, you might want to consider getting to it sooner rather than later as the report points out that this spring will see a price peak.
Along with that, there will also be an increase of 8.1% in the cost of housing in 2022, which is a revision of RBC's initial prediction of 6.2%.
Going into 2023, the bank also predicts that the price will begin to drop 2.2% – and not increase by 0.8% as they originally predicted – and could even continue to drop 5% per quarter from there.
If these predictions come out to be true, it might be best to sit and wait until next year if you're looking to buy a home.
Patience is a virtue!
While you wait, you can even begin to set yourself up for the big purchase by talking to a realtor and lender, really analyzing what you're looking for and more.
This article's cover image was used for illustrative purposes only.