The drop in home prices in Canada this year will be steeper than forecast three months ago, a Reuters poll showed.
While most analysts said such a fall in house prices would improve affordability somewhat, others said they needed to drop a lot more to make any difference..“We think in normal times a 30% house price decline would be a crash, but in this context of what we’re coming from with the two-year surge, it’s a necessary correction to restore affordability,” said Tony Stillo, director of economics for Canada at Oxford Economics.
House prices in Toronto and Vancouver, front runners in the recent house price boom, were forecast to drop 15% and 12%, respectively, in 2023, compared with rises of over 50% and 30% during the pandemic.Article content “We view the drop in average prices as only offsetting the run-up in mortgage rates, so net affordability really hasn’t improved in the past year,” said BMO Capital Markets chief economist Douglas Porter.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada home prices to drop 12% in 2023, still remain unaffordable for many: Reuters pollThe drop in home prices in Canada this year will be steeper than forecast three months ago but mild compared with an historic run-up during the COVID pandemic, leaving many first-time buyers still priced out of the market, a Reuters poll showed. Following nearly a year of mostly aggressive interest rate rises from near-zero that the Bank of Canada has only recently set on pause at 4.50%, mortgage rates have soared over 170 basis points, restricting activity in the once red-hot market. Average home prices in Canada have already fallen roughly 15.0% from their early 2022 peak and are forecast to drop 12.0% this year, according to the median view from a Feb 15-28 poll of 13 housing experts.
Read more »
Paris Street Style 2023: The Best Looks at Paris Fashion Week Fall 2023Fashion month may be coming to a close, but we'll always have Paris (street style, that is). Click here for the best Paris fashion week Fall 2023 street style looks so far.
Read more »
Where to watch 2023 Oscar-nominated movies in CanadaThe Academy Awards are less than two weeks away 🎥 Here's how to watch this year's top Oscar-nominated movies
Read more »
N.L. gymnast wins Lechelt True Sport Award at 2023 Canada Winter Games | SaltWireGabe Flynn, a gymnast for Team Newfoundland and Labrador, has been awarded the Pat Lechelt True Sport Award during the 2023 Canada Winter Games. | SaltWire
Read more »
Your March 2023 Horoscope Is Here | Elle CanadaThe time is now—find out what the stars have in store for you this Pisces season. Your March 2023 horoscope is here.
Read more »
2023 Canada Winter Games athlete profile: Samantha Morrisson | SaltWireName: Samantha Morrison Age: 17 Hometown: Dominion, Nova Scotia Sport: Hockey Canada Games Goal: A hard-working two-way centre, Morrison is ...
Read more »