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.
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%.
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.
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.”