Canada Mortgage and Housing Corp. (CMHC) is forecasting that house prices across Canada
will decline as much as 15% by the second quarter of 2023.
The federal housing agency said in a report that it expects the national average home price to
fall 15% from the peak this year of $770,812 by the end of June next year.
On an annual basis, house prices in Canada are expected to grow 2.6% this year compared
with 21.3% growth in 2021.
CMHC forecasts that house prices will decline 6.3% for all of 2023 before rebounding and rising
2.1% in 2024.
The housing agency said that, despite price declines in coming months, housing affordability in
Canada will not improve because higher interest rates will make it difficult for many people to
afford a mortgage.
In another separate report, realtor Royal LePage lowered its home price expectations, saying it
sees prices in the fourth quarter of this year decreasing and erasing most of the gains made at
the start of 2022.
