Top 3 Best, Latest News: Canada’s housing adjustment has been underway for about half a year now, and analysts are beginning to get a better sense of the full extent of a potential recession once the dust has completely settled.
A new report released this week by TD Bank suggests that from the peak of the housing boom at the end of the first quarter of 2022 to the end of the recession in the first quarter of 2022, average home prices across the country could fall 20% to 25%. predicted to be. A quarter of 2023, as per, websites to post free ads.
However, it should also be emphasized that late recession prices will still be higher than pre-pandemic. The projected decline would only undo 46% of the house price gains experienced in the pandemic impact over the past 2.5 years.
As per, Latest News: Over the same period to early 2023, home sales will fall by 35%. This is slightly below the 38% decline recorded during the 2008 recession.
So far, home prices have fallen the most in Ontario and British Columbia. Alberta’s price decline has also been “relatively sharp”, but home sales volumes are still considered healthy and tight compared to BC and Ontario. Other Prairie and Atlantic states are doing better, as per, websites to post free ads.
In general, condo prices have fared better than single-family homes, whose prices skyrocketed during the pandemic. However, analysts believe condo prices will drop significantly in the coming months, but not as much as condo prices fell between 2017 and 2019.
“These different dynamics capture a partial reversal of buyer behavior during the pandemic. Some people chose to live further afield (some left their hometowns en masse),” the report said, as per, websites to post free ads.
“These changes in behavior have caused shockwaves in price increases in markets further from the larger centers within BC and Ontario, which are now contracting faster than the main markets.”
However, the overall housing slowdown through early 2023 is expected to be nothing more than a ‘recalibration’ of the Canadian housing market.
The pace of unwinding in the housing market will slow as Bank of Canada rate hikes are expected to be gradual in the fourth quarter compared to the massive consecutive rate hikes over the past few months.
Unlike previous major recessions, the economy is still strong, personal incomes are rising and the labor market is still very tight. Canadians have also accumulated significant savings during the early period of the pandemic, which has increased their ability to finance existing mortgages and down payments.
Additionally, inventories on both the new and resale markets remain low.
Strong population growth is also spurring demand for housing, especially with federal immigration targets being raised. Over the next two years, immigration targets will be even higher than her 2022, with 450,000 new permanent residents in 2023 and 2024 each.