NEWS

Many Canadian cities have both current homeowners and prospective buyers wondering how low property valuations could go based on the continually rising interest rates and the post-pandemic market really begins to emerge.

According to a recent report, “Canadian Residential Real Estate Outlook” from Desjardins Economic Studies, it depends on where in the country you are living. The study suggests that the more growth a city had during the pandemic, the further that city has to fall.

The report predicts that national home prices peaked in February, 2022 and the average sale price in Canada will drop 15% to the end of 2023.

The average home price in Nova Scotia and New Brunswick is expected to fall 20% throughout that timeframe. Ontario and Prince Edward Island could experience an 18% drop and British Columbia dropping 15%. Provinces such as Alberta, Saskatchewan and Newfoundland & Labrador saw less dramatic increases during the pandemic and are expected to generate less decrease in prices.

According to Karen Yolevski, COO for Royal LePage, “Canada’s housing market is really made up of individual “micro-markets” and each follows its own path”. The impact of each market will be based on the big unknown at this time – How High Will Rates Go?

Source: Global News