The average home price in the country might fall 20% to 25% in 2023, following these exploded during the COVID-19 pandemic, according to a report by TD Bank.
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Prices have already started to fall over the summer in some parts of the country, a trend that might continue.
“We have to see where we are starting from. Since the start of the pandemic, we have nevertheless seen in Quebec an increase in house prices of around 50%, which is not nothing. So a 25% drop is still relatively acceptable given the increase we’ve seen so far,” explained Charles Braunt of the APCIQ, in an interview with TVANouvelles at noon.
So people who bought their homes during the pandemic, when prices were rising, are now facing rising interest rates and a possible drop in the value of their home.
“For those who have bought in the last twelve months or more, it is sure that with the overbidding, the prices have increased in a somewhat artificial way, especially just before the peak… People who have bought during that period may have bought too expensive and a little overvalued, ”adds the expert.
However, he warns that real estate investments must be seen in the long term.
“People who bought during this period will have to wait longer before selling their house,” he says.
He assures that in the long term, house prices will continue to rise, despite this temporary drop predicted by experts.