House Prices In Canada Are Set To Drop In 2023 & It Could Be The Year To Buy A Home
Prices are set to be the lowest since 2020. 🏠
A row of townhouses. Right: An apartment building.
If you've been thinking about getting on the property ladder and buying a home in Canada, 2023 might be a good year to finally go for it.
In a new report by TD Canada, financial analysts are predicting that house prices in Canada will "bottom out" before the year is through.
This means that property prices are likely to decline to a newfound low point, before eventually climbing up again as we head toward 2024.
According to the report, house prices in Canada will soon reach their lowest point since 2020. An exact time frame for the low has not been specified, although it's estimated to be sometime in early 2023.
This decline is likely to be around 20% – if measured from the highest price point of 2022 to the projected lowest point in 2023.
Not only is that a pretty big drop in the price of a home, but it's also steeper than what was previously projected.
And this will be felt in some provinces more than others.
Lower prices will be much more noticeable in the Atlantic region, Ontario and B.C., according to the report. However, the change won't be as significant in the Prairies and Newfoundland and Labrador.
The predictions present a great opportunity for house hunters, but are a bit of a blow for anyone looking to sell this year.
With house prices on the decline, you might expect the number of property sales to go up, but it seems this is not likely to be the case.
Due to the concerns that many Canadians are feeling around affordability, the report predicts that "2023 is likely to mark the weakest sales year since 2001." Ouch.
House sales are set to return to normal rates by 2024 though, which will, in turn, bring prices back up.
Unfortunately, supply and demand really don't really take a break, ever!
If you're not really looking to buy right now, there are a bunch of cities in Canada where your monthly rent can still actually be below $1,000 – you just might need to pack your bags and brush up on your French!
This article's cover image was used for illustrative purposes only.