Real Estate Market Update
January 25, 2023
As of December 2022, a review of select provincial and municipal average prices reveals positive growth in certain regions. These areas have been identified and highlighted for further investigation.
According to Robert Hogue, RBC Economist, “Home resales are now gradually stabilizing in most parts of the country. This is consistent with our view that cyclical bottom is approaching – likely early 2023.” Furthermore, RBC forecasts that the Housing Price Index (HPI) will continue to decline until the early spring. These insights provide valuable strategic information for stakeholders in the housing market.
According to the Canadian Real Estate Association, the housing market in 2023 is expected to see an increase in home sales activity, with a projected 0.5% rise to 495,858 units. This trend is expected to continue into 2024, with a projected 10.2% increase to 546,625 units.
In terms of home prices, the association anticipates a decline of 5.9% on an annual basis, bringing the average price to $662,103 in 2023. However, this trend is expected to reverse in 2024, with a projected 3.5% increase to $685,056. It should be noted that these are projections and not guarantees, and various factors, such as economic conditions and government policies, may affect the actual performance of the housing market.
Furthermore, please remember that while the data provided may indicate trends at a national level, there may be variations in performance among different regions or localities. You must consult with your Mortgage Strategy Manager to obtain a more comprehensive understanding of the specific information and market conditions relevant to the area you are most interested in. This will enable you to make informed and strategic decisions regarding your real estate investments.