The real estate frenzy that took flight with the pandemic came crashing down to Earth in March with the first of seven interest rate hikes last year. Now analysts and experts are offering a mostly sober forecast for the 2023 housing market.
frenzy that took flight with the pandemic came crashing down to Earth in March with the first of seven interest rate hikes last year. It has been grounded ever since.
“We’re not seeing in the broader economy any impact of the interest rates we have. We’re seeing it in the housing market and the housing market is telling us there’s something really bad coming,” he said, referring to job losses that will lead to homeowner distress. A lack of listings is actually supporting price levels, said the Toronto Regional Real Estate Board in its“When you see sales volume down by a third or 40 per cent, or 50 per cent, you typically see immediate changes in home price — significant, immediate changes,” said Royal LePage’s Soper.
Dunning warns that the Bank of Canada has signalled employment is too high for its inflation-fighting rates to work optimally in cooling inflation. Job losses come when employers start shedding staff to meet a lighter demand for products and services, he said. The real estate market should find its bottom this spring as long as interest rates have peaked and RBC believes they have, he said.
Because it still has a significant affordability challenge, prices in the GTA could yet have a ways to fall, he said.
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