The average price of a home in Canada might fall 20 to 25 per cent by the first quarter of 2023, compared to record levels recorded earlier this year, suggests a new report from TD Bank, one of the largest institutions finances of the North American country. The number of homes sold is expected to fall by 35% over the same period, the report estimates.
According to economist Rishi Sondhi, the projected price decline represents a decline not seen since at least the late 1980s. The decline will follow an equally unprecedented rise seen during the COVID-19 pandemic.
According to Sondhi, the decline will mean a “recalibration” of the housing market in Canada. Over the longer term, TD Bank remains more optimistic regarding the outlook for the housing market, as population growth should remain healthy and support demand.
