Toronto: A TD Bank report, the average price of homes in Canada could fall by 20 to 25 percent by the first quarter of 2023 as compared to the prices of this year.
According to the report, there was a slight decline in the prices of houses in the summer after the increase in interest rates on mortgage. Many expect this decline to continue in the same way till the end of this year and winter.
According to the latest data from the Canadian Real Estate Association (CREA), home prices stood at $629,971 in July, down 5 percent from $662,924 in July last year. In terms of seasonal adjustment, it was 3 per cent lower than the month of June, or $ 650,760.
Rishi Sondhi, an economist at TD, wrote that the decline in prices shown in this report was similar to the decline in the 1980s when data collection was started, but during the pandemic, the prices of these houses increased in an unprecedented manner.
Sondhi said the worst effects can be avoided if work is done to keep demand and prices subdued. At such a rapid pace, housing prices rose for the first time in decades, with consumers’ incomes rising and excessive savings, as well as fewer lists of new and resale markets.
He said he had expected these prices to fall by 15 per cent by the end of 2023, after rising to $817,253 in February. But now these prices will come down by 20 per cent and 25 per cent as per the national average, once re-adjusted.