Canada Housing Market: The Cities Where Home Prices Are Set To Get Cheaper In Fall 2023
If you're trying to make sense of Canada's housing market this fall, between interest rates and high prices, you might be left wondering which way is up.
But a new report is bringing things back down to earth to explain what the final months of 2023 have in store for the real estate market and where you might find some cheap houses for sale in Canada this fall.
Re/Max released its 2023 Fall Housing Market Outlook report on Tuesday, outlining where its experts believe the Canadian housing market will go to close out the year.
Overall, the report predicts housing prices in Canada will "remain flat" and result in a "softer market" this fall, largely because of the combination of the country's "highest interest rates it's seen in decades," and a lack of homes up being put up for sale.
Yawn. That doesn't change much.
But despite the national average more a less remaining the same, there will still be changes for individual housing markets across the country — and there are some cities where housing prices are expected to drop significantly.
In Western Canada, many cities are set to see the average housing price increase in the coming months, but in Kelowna, B.C., prices are expected to drop by 3% this fall. Housing prices in Vancouver (among the most expensive in Canada) are expected to drop by 2%. Where real estate in Western Canada is expected to get pricier this fall is in Calgary (up 4.5%) and Edmonton (up 2%).
Over in Ontario, several housing markets could experience significant price drops by the end of the year, according to Re/Max. Housing prices are expected to drop in Hamilton, Ottawa, and Windsor (by 2%), and North Bay (by 2.5%). The biggest price drops are predicted in Kitchener-Waterloo (4%), Peterborough (5%) and Durham (5%).
According to data from Re/Max, housing prices in Peterborough have dropped the most in 2023, having already fallen an incredible 16.8% from August 2022 to August 2023.
Then, in Atlantic Canada, housing prices are widely expected to remain the same this fall, with just a 1% price drop predicted for the Halifax real estate market.
"While we wait for governments to implement a tangible national housing strategy to boost Canada’s supply of both affordable and diverse housing, the market is starting to ease in some regions," said Re/Max Canada Executive Vice-President Elton Ash, in a statement. "This is bringing some much-needed relief from the sky-high prices we’ve experienced over the past couple of years."
Additional data from Re/Max shows one in 10 Canadians are planning to buy a home sometime in the next 12 months, but many plan to wait and see how interest rates play out. The same is true for younger homebuyers, while 55% of Gen Z and 49% of Millenials in Canada admitted their housing plans have changed because of the lack of affordable homes on the market.
While this report ties up the Canadian housing market for 2023, it also gives some homebuyers some early indications of the real estate market for 2024.
"If the fall market is an early indicator for 2024 activity, we may see a very active first quarter as buyers and sellers take advantage of easing prices into the earlier part of next year," said Re/Max Canada President Christopher Alexander.
So, if you're in the market for a new home, fall 2023 could be your time!
This article's cover image was used for illustrative purposes only.
