RE/MAX outlines market possibilities for 2023
Home sale prices in Canada will go down by an average of 3.3% next year, with the biggest declines likely to be seen in Ontario and Western Canada, according to a new RE/MAX analysis.
“In sharp contrast to 2022, most regions … will experience more balanced conditions in 2023 – a trend that’s already starting to materialize as a result of current economic conditions,” RE/MAX said.
The greatest price decreases will be seen in Ontario and Western Canada, where some markets may see declines of anywhere from 10% to 15%.
Fully 55% of regions that RE/MAX analysed are also expected to shift into balanced or buyer’s market conditions, with sales numbers likely to increase in 34% of Canadian markets.
Read more: How much have mortgage interest costs risen?
“Canadians are understandably hesitant to engage in the market early in 2023,” said Christopher Alexander, president of RE/MAX Canada.
“Despite this, more Canadians see real estate as a solid long-term investment when compared to this time last year. Governments must collaborate to address supply challenges, to make homeownership feasible for those who want it.”
More than seven in 10 Canadians (73%) indicated a belief that homeownership is the best long-term investment they can possibly make. This share was a considerable increase from 49% in 2021, RE/MAX said.
Seventeen per cent (17%) of Canadians surveyed by RE/MAX said that they do not currently own a home but are planning to do so in the future. Sixty per cent (60%) said that they currently own their home, while only 4% said that they do not own a home nor do they plan to get one.