Home prices to drop one per cent by Q4 2023: Royal LePage outlook

TORONTO –

Royal LePage is forecasting the mixture worth of a house in Canada will drop by one per cent to $765,171 by the fourth quarter of 2023.

The actual property firm says it expects costs to flatten within the second quarter after which modestly improve within the second half of the yr, ending 2023 on an upward trajectory.

Its calculations present the median worth of a single-family indifferent property will fall by two per cent to $781,256 and condominiums will slide one per cent to $568,933 by the top of subsequent yr.

Royal LePage attributes its predictions to declining affordability, which has been exacerbated by rising rates of interest, and continued housing provide shortages, that are performing like a flooring on residence worth declines.

It foresees houses in Vancouver remaining the costliest in 2023, dipping just one per cent subsequent yr to greater than $1.2 million. Regina would be the most inexpensive of the locations it studied as mixture residence costs will fall 1.5 per cent to $361,495 by the top of 2023.

The Canadian Real Estate Association beforehand forecast residence costs will improve 0.2 per cent in 2023 to $721.814 in 2023.