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House Prices In Canada Are Set To Drop In 2023 & Here's How It Will Compare To Pre-COVID Times

Experts are predicting a major "correction."

Trending Staff Writer
A residential street in Nova Scotia. Right: A house in Vancouver.

A residential street in Nova Scotia. Right: A house in Vancouver.

Canada's housing market has been on the decline lately, but a new analysis suggests prices could drop even further than previously anticipated.

According to Levis, Quebec, financial company Desjardins, the cost of a home in Canada is expected to drop a whole 23% between February 2022 and December 2023.

This is a major decline from the housing expert's earlier predictions of a 15% drop during the same period.

But, even with that, prices are not expected to go down to a pre-pandemic level, especially in cities like Toronto and Vancouver.

Experts are calling this a "correction" of the highly inflated housing prices we've seen over the year or so, but not a complete "balance."

While this is a bit of good news for those looking to buy, some places in Canada will see a different correction over the coming months depending on what's been going down in their prospective market.

Provinces that saw the biggest price gains in housing over the pandemic – New Brunswick, Nova Scotia and P.E.I. – will see the steepest declines going into the winter.

According to estimates, prices might fall as much as 29% in New Brunswick, 27% in Nova Scotia and 25% in P.E.I.

The major markets like Toronto, Vancouver and Montreal will probably start to see a slight decline too, but it by no means will be as much as what's expected in Atlantic Canada.

What's more, Desjardins estimates the price to fall by 22% in B.C. and 24% in Ontario.

On the whole, the report states that this could mean a reintroduction of affordability in Canada's housing market.

And, if that continues, they even suggest that the Bank of Canada could start to reverse some of the high-interest rates they've imposed as a means of combatting inflation.

There has been a large-scale battle to try to beat back the ever-increasing inflation rate that has plagued Canadians since January.

While interest rates have been raised in response to this, those increases have also impacted the wallets of Canadians, with many worrying about the effect that it could have on their mortgages and day-to-day expenses.

This article's cover image was used for illustrative purposes only.

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