Canadian Real Estate Association Lowers 2023 Sales and Price Forecast Due to Regional Weakness

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The Canadian Real Estate Association (CREA) has revised its 2023 forecast, projecting a nearly 10% decrease in the number of residential property sales compared to 2022, largely due to weakness in Ontario and British Columbia. CREA expects approximately 449,614 residential property sales via Canadian MLS systems in 2023, marking a 9.8% drop from the previous year. Additionally, the national average home price is forecasted to fall by 3.3% on an annual basis to $680,686 in 2023. This updated forecast is a significant shift from previous expectations, which in July predicted a 6.8% decline in sales and a 0.2% drop in average prices. High-interest rates have contributed to the reduced demand, causing fewer buyers to enter the market.

In September, CREA reported a 1.9% increase in home sales compared to the same month the previous year, though sales fell by 1.9% on a month-over-month basis. The national average home price in September was $655,507, a 2.5% increase from the same month in 2022. However, the aggregate home price index experienced a 0.3% month-over-month decline, the first since March, primarily due to trends in Ontario. The housing market in the Toronto region has seen a downward price trend, creating opportunities for buyers who were previously priced out of the market, particularly for first-time buyers looking to purchase more affordable properties.

Read the full article on: CP24