The average home price in Canada is likely to end this year down 4.8% from 2022, according to a new report by the Canadian Real Estate Association (CREA).
The national association forecasts that the average price of a home in Canada will end 2023 at or around $670,389, down nearly 5% from a year earlier.
However, CREA also forecasts that home values in Canada will rise 4.7% in 2024 to reach an average price of $702,214.
In terms of home sales, CREA expects them to decline 1.1% this year to 492,674 before gaining 13.9% in 2024.
The latest market outlook from CREA comes as home sales have been falling for months due to lower listings and depressed buyer sentiment in the wake of eight consecutive interest rate increases from the Bank of Canada.
While Canada’s central bank has now paused its interest rate hikes, it continues to hold rates at the highest level in more than a decade, which is keeping the interest charged on mortgages at an average of 6%.
The latest data released on Canada’s housing market showed that new listings were at a 20-year low in March.
CREA said the average home price in Canada during March was $686,371, down 13.7% from a year earlier.
