Oxford Economics predicts that housing prices in Canada will drop by 30 percent this year from their peak in February of last year. This is already down 14 percent, but the worst-case scenario could potentially bring this to a 48 percent drop. According to the report, if distressed homeowners list faster than sales, the market will become a buyers’ market and prices may fall even lower. The best-case scenario is that prices fall 27 percent from last year’s peak. In Vancouver, home resales have already decreased by 45 percent and Toronto has seen its quietest resale activity in 14 years. The rate of decline for home sales has slowed, and the Bank of Canada has completed its rate hike campaign. The price correction is expected to continue, with residential investment down 13 percent from March 2022 and predicted to fall another 19 percent by the third quarter of 2023.
Home prices in Canada could decrease by 30%, according to report.
