For buyers who wait for the price drop to acquire a property, the window of opportunity will soon close, warns the Canada Mortgage and Housing Corporation (CMHC).
“The recent decline in house prices in Canada, from their historic pandemic highs, is expected to end in mid-2023, but the average price for the year will be lower than in 2022. Prices will rise thereafter and until the end of the forecast period”, argues the federal housing agency.
Since the drop in prices observed in the first part of the year will be greater than the rise in prices in the second half of the year, the variation in the average price of properties in Canada will remain negative in 2023, before rising again in 2024 and 2025.
In detail, the average price will fall by -8.6% in 2023, then increase by 7.9% in 2024 and 7.5% in 2025.
These projections are taken from the most recent Housing Market Outlook (HMP) report released Thursday by CMHC. This annual report provides a market overview of Canada and 18 major urban centers and forecasts to the end of 2025.
It is the scarcity of new housing supply, combined with the upcoming decline in interest rates from 2024, which will contribute to the resumption of housing inflation.