Re/Max report expects home prices to decrease 2.2% this fall

Photo: The Canadian Press

A report by Re/Max Canada forecasts the national average home sale price in Canada will fall 2.2 per cent in the final months of the year.

The network of real estate brokers and agents says the moderation in the market for the September-to-December period comes amid rising interest rates, record inflation and broader global and economic uncertainties.

Mortgage rates have risen sharply this year, raising the cost of borrowing for potential buyers.

Re/Max Canada president Christopher Alexander says many markets are experiencing softer sales given recent interest rate hikes, providing some reprieve from the unprecedented demand and unsustainable price increases across Canada through 2021 and in early 2022.

However, Alexander says the current lull in the market is only temporary and until housing supply increases, these boom and bust cycles will likely be a recurring event.

The Re/Max report follows a move by the Canadian Real Estate Association earlier this month to cut its forecast for home sales this year and lower its expectations for price growth.