Real estate forecast: Here's what Canadian home prices will look like in 2023

Royal LePage has released its much-awaited yearly real estate forecast for next year, and things are going to change quite a bit for Canadians looking to buy a home.

So far this year, the Bank of Canada has increased its interest rate seven times, leading to a light fall in home prices, but not a hike in home purchases.

Homeowners, aspiring homeowners, and those curious about real estate investments can plan their next move according to Royal LePage’s quarterly predictions.

During the second quarter of the next year, prices are expected to “flatten” across Canada. By Q3, we might see modest improvement in the market, but the good news is that the year might end on an overall upward trajectory.

Experts estimate that the aggregate price of a home in Canada is set to decrease 1% year-over-year to $765,171 in the fourth quarter of 2023. By this time, the median price of a single-family detached property could decrease 2% to $781,256. For a single-family condominium, it could go up by 1% to $568,933.

Unlike the rest of Canada, both condos and single-family detached homes will see a rise in prices in Ottawa, Calgary, and Halifax. But there is some hope. Explore your options keeping in mind the forecast below:

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Single-family detached home

Single-family detached home prices are expected to drop 2.5% in both Toronto and Montreal.

Even with a projected 2% drop, Vancouver will have the priciest single-family detached homes of all major Canadian cities, with an average price of $1,644,538.

The lowest median price for a home as such is $389,648 in Regina, where a 2% decline in home prices is expected.

Condominium unit

Condo prices are expected to go up 1% in Toronto, and drop 1.5% in Montreal.

Of all major Canadian cities, only Montreal, Edmonton, and Winnipeg are expected to witness a decline in condo prices, with Winnipeg seeing the biggest drop (3%).

Edmonton will have the cheapest condos with an average price tag of $198,281.

The highest jump in condo prices (2.5%) is projected to happen in Calgary, but the median price is still pretty affordable at $239,543.

Vancouver did not surprise, of course. A condo in the Greater Vancouver Area will cost you $747,299 — the highest of all major Canadian cities.

Read the full real estate forecast here.