A new report predicts average home sale prices in Canada will fall 3.3 per cent next year with the biggest declines expected in Ontario and Western Canada where some markets may see prices fall 10 to 15 per cent.
The report by Re/Max Canada made the forecast using surveys of brokers and agents from across the country. Home prices in Canada have fallen this year as the real estate market has cooled amid higher interest rates that have increased the cost of mortgages for borrowers.
Re/Max says 60 per cent of housing markets in Canada are expected to be in a balanced position in 2023, however some markets are expected to see larger moves in prices.
Prices in Kelowna, B.C., Nanaimo, B.C., and Durham, Ont., are predicted to drop 10 per cent in 2023, while prices in Barrie, Ont., are expected to fall 15 per cent.
Prices in the Greater Toronto Area are estimated to fall 11.8 per cent, while Greater Vancouver is expected to decline 5.0 per cent.
Meanwhile, Calgary is expected to see a 7.0 per cent increase in sale prices and Edmonton is forecast for a 3.0 per cent gain. Halifax is expected to gain 8.0 per cent.