Average Canadian home prices expected to drop 2.2% this fall: RE/MAX
The price of a home in Canada grew substantially year-over-year at the start of 2022, but now RE/MAX agents and brokers anticipate prices to drop by 2.2% in Q4.
According to RE/MAX Canada’s 2022 Fall Housing Market Outlook Report, many Canadian markets will see a drop in prices due to rising interest rates, high inflation and economic uncertainty.
Prices in Metro Vancouver are expected to drop 3% by year’s end, while prices in the Greater Toronto Area are expected to drop 6.3%.
2022 Fall Housing Market Outlook Report/RE/MAX Canada
Winnipeg and Kelowna are two other markets that will also see a substantial drop in prices by 8% and 6.5% respectively.
Elton Ash, Executive Vice President of RE/MAX Canada, insists real estate as a long-term investment continues to yield solid returns.
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“Despite the fact that nearly half of Canadians are waiting to buy or sell a home, we’re confident that as economic conditions improve by mid-2023, activity will resume,” Ash says.
It’s not all doom and gloom, according to the report.
2022 Fall Housing Market Outlook Report/RE/MAX Canada
Seven out of the 30 markets analyzed are likely to experience “modest price appreciation” between 1.5% and 7%. These markets include Muskoka, Calgary, Moncton and Saint John’s.
“The current lull in the market is only temporary,” says Christopher Alexander, President at RE/MAX Canada. “Until housing supply increases, these ‘boom’ and ‘bust’ cycles will likely be a recurring event.”
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