RE/MAX Canada expects average residential prices to decrease by 3.3 percent in 2023
The biggest price declines across the country are expected in Ontario and Western Canada, where some markets may see average residential sale prices decrease by 10 to 15 percent
Price growth outlooks are anticipated in Atlantic Canada markets, with average residential sale prices expected to increase by eight percent in Halifax and four percent in St. John's in 2023
- 60 percent of regions in Canada are expected to be balanced markets in 2023, according to RE/MAX brokers and agents
- 73 percent of Canadians still say that home ownership is the best long-term investment they can make
Toronto, ON and Kelowna, BC, Nov. 29, 2022 /CNW/ -- Amid rising interest rates, and a looming recession, RE/MAX Canada is anticipating a modest decline of 3.3 percent in average residential sales prices across the country in 2023. The estimates are based on surveys of RE/MAX brokers and agents from coast to coast, as reflected in RE/MAX's 2023 Canadian Housing Market Outlook Report.
Similar to the majority of regions across the country, Edmonton is currently experiencing a balanced market, with demand expected to increase in the spring. Move-up and move-over buyers are driving demand in the region and are expected to continue doing so into 2023. The average residential sale price increased by three percent from $387,614 in 2021 (January-December) to $401,025 in 2022 (January-October). Single-detached homes remain the dominant housing type.
"We're seeing three main trends this year," said John Carter of RE/MAX River City. "Migration from other provinces, increased demand for luxury residential real estate, and balanced market conditions." New construction developments continue to be pressured by ongoing supply chain challenges and inflationary cost issues. Additionally, limitations on skilled labour are contributing to hurdles experienced by many builders.
Edmonton is expected to weather the recession well, as average incomes in the region are some of the highest in the country, according to Carter. Despite rising interest rates, the majority of buyers have not capped their mortgage capacity. Demand for downtown condos is expected to continue rising in 2023, with demand in the luxury segment becoming more robust in the year ahead. The average residential sale price in Edmonton is anticipated to increase by three percent in 2023.