RE/MAX is expecting a continued decrease in the prices of the Canadian real estate market in 2023.
According to its 2023 Canadian Housing Market Outlook Report, rising interest rates, and a looming recession, will cause residential prices to decrease by an average of 3.3 per cent in the new year across the country.
The report finds that around 60 per cent of regions in Canada can expect a balanced market in 2023.
The real estate brokerage says while Ontario and Western Canada can expect the largest price declines of about 10 to 15 per cent, Atlantic Canada markets can expect a price increase of about eight per cent in Halifax and four per cent in St. John’s.
As per the report, move-up and move-over buyers are expected to dominate much of Canada with the exception of Ottawa and Calgary where first-time buyers are expected to lead.
Highlights of 2023 Canadian Housing Market Outlook Report:
British Columbia:
House prices in Vancouver/Greater Vancouver are expected to decrease by 5% from 2022 (Jan to Oct) average price of $1,267,131.00 to $1,203,774.45 in 2023.
RE/MAX says Nanaimo and Kelowna will be buyer’s markets with a price drop of 10% expected in the new year.
Victoria is expected to see an average residential sale price increase of about 2%.
Prairies:
RE/MAX Canada
While the housing market is expected to be a seller’s market in early 2023 in Calgary, Edmonton is expected to have a more balanced market. Prices are expected to rise by 7 per cent in Calgary and 2 per cent in Edmonton.
RE/MAX expects Saskatoon, Regina and Winnipeg to remain a balanced market in 2023. The average residential sale price in Regina is anticipated to remain the same, but Winnipeg prices are expected to decrease by 8.5 per cent in the new year.
Ontario:
Greater Toronto Area housing market which saw average residential prices increase more than 450 per cent since 1996 is expected to be a balanced market in 2023 with move-up and move-over buyers driving demand in the region and prices expected to reduce by approximately 11.8%.
The average price in Toronto is expected to be around $1,061,853.91, a decrease from the 2022 (Jan to Oct) average of $1,203,916.00.
Barrie, which experienced a 50% price increase in 2021, can expect to see a price decrease of 15 % in 2023, while Mississauga/Brampton and Muskoka can expect an increase of 5% and 8%.
RE/MAX Canada
According to the RE/MAX brokers, average price growth will increase in Haliburton (6%), Hamilton-Burlington(4%), Kingston (4%), Niagara (3%), Oakville(2%), Ottawa (4%), Peterborough and the Kawarthas (4%), Sudbury 3.5 %), Windsor (3%), York Region (5.5 %).
Average residential sale prices are expected to decline by two to 15 per cent in London, Kitchener-Waterloo, Barrie, the GTA, Durham, and Lakelands West (Georgian Bay area) in 2023.
Collingwood/Georgian Bay is expected to be a buyer’s market with prices expected to reduce by 11%.
RE/MAX Canada
Quebec
RE/MAX expects Montreal Region to become a balanced market from a current seller’s market.
The average residential sale price increased by 13 per cent year-over-year in Montreal from $490,000 in 2021 to $556,000 in 2022 (January-October).
RE/MAX expects the average sale price in the Montreal Region to decrease by five per cent and ten per cent in Quebec City.
Atlantic Canada
RE/MAX Canada
Halifax, which saw a 19 per cent increase in year-over-year residential sale prices from $457,741 in 2021 to $542,663 in 2022 is expected to remain a seller’s market in 2023 due to the tight supply of houses. The average residential sale price in Halifax is anticipated to increase by eight per cent in 2023. St. John’s house prices are also expected to increase by 4%.
House prices are expected to decline in Moncton, Saint John and Fredericton by 3.5 and five per cent in 2023.
RE/MAX anticipates sale prices to remain unchanged in Charlottetown.
RE/MAX also commissioned a survey which found that 73 per cent of Canadians view home ownership as the best long-term investment they can make and 15 per cent of Canadians are considering moving to another province in 2023 to find better housing affordability and liveability.