Housing Prices In Canada Could Drop By 25% In Early 2023 According To Experts & Here's Why
Canadian homebuyers could expect some relief coming their way next year, as housing prices in Canada are expected to plunge.
A new report by TD Canada has found that Canadian housing prices in 2023 could drop by up to 25% in the first quarter.
Places that are expected to see the sharpest drop in the cost of a home are in British Columbia and Ontario, as both saw some of the highest increases during the pandemic, the report stated.
Saskatchewan and Manitoba are likely to hold more steady during this period while provinces like Alberta, Quebec and Atlantic Canada will see something between the two.
The report is quick to point out that the incoming decline is more of a "correction" of the 46% increase that we saw during the pandemic, prompted by an explosion of homebuying brought on by work-from-home rules.
While it describes the drop as "unprecedented", it's also the result of a similarly unprecedented hike in prices.
The experts say that the reason this correction is coming is multi-faceted.
One of the factors is that they are expecting Bank of Canada interest hikes to continue, but not be as high as they have been.
This is something that will hopefully drive the cost of housing down, but not farther than the mere correction predicted.
The report also says that the housing prices won't go down farther than previously thought because of a likely dip in 5-year bond yields – the bonds that undergird 5-year mortgage rates — as the economy softens in the new year.
Of course, all of this might make you keener on buying yourself a new home in the coming months.
And, depending on your needs, you might be interested in finding out the best place to buy a house in Canada right now.
According to a real estate expert, the best place in Canada can really vary based on your wants, your needs, and local economic and developmental conditions.
This article's cover image was used for illustrative purposes only.
