Home prices in Canada will fall by 12% in 2023
These are the results of a study by Reuters, one of the world's largest international news and financial information agencies.
The decline in real estate prices in Canada this year will be somewhat steeper than the forecast of three months ago promised. But it will be much milder than the now-historical price blowout during the pandemic, which caused first-time buyers to give up buying.
Aggressive interest rate hikes for almost a year have greatly reduced activity in what was once a very lively sector.
The average price of real estate in Canada has already fallen about 15% from its 2022 peak. This year, 13 real estate experts are predicting a price drop of another 12%.
This is slightly more than the 10% that experts predicted last November.
While most experts assure that this reduction in real estate prices will improve the situation with the purchase of affordable housing to some extent, some of them believe that it is necessary to reduce prices much more to feel a tangible difference.
"Of course, in normal times, a 30 percent drop in real estate prices would be a disaster, but in today's context, it's a necessary measure to restore affordability to buying," said Tony Stillo, director of economics at Oxford Economics, the world's leading economic forecaster.
