Is the pandemic housing market finally slowing its pace? A report by TD Bank gave the scoop to CTV news a week ago.

An image of a house figurine sitting on top of a small pile of loose change

Key Takeaways 

  • Rising borrowing costs (interest rates) will affect housing activity
  • A forecasted "23% annual average decline in Canadian home sales in 2022 and a 12% pullback in 2023."
  • After this small decline, home prices are likely to grow "modestly" thereafter, with some recovery in buyer demand.
  • The places that will likely see the most decline are highly populated areas such as B.C. and Ontario.
  • Home prices in the Prairies will hold up better than anywhere else in Canada, alongside Newfoundland and Labrador. 

What it Means 

Rising interest rates are going to slow down the extremely active housing market, understandably. It's not predicted to be a large decline, so we're going to see this market that favours sellers right now cool down into a more balanced market over the course of this year. Multiple offer scenarios and competitive, higher-than-market-value home sales will begin to decrease, and the supply of home inventory will start to increase. Here in the Prairies though, we may not see those conditions begin for a while yet. We've seen interest rates begin to rise, but buyer demand is still quite high. In addition, homes out are are more affordable than the rest of the country. The current interest rate will affect mortgage payments of a BC home (avg price = $740,000) more than a SK home (avg price = $271,000). So, it makes sense that our situation isn't likely to slow down right away.

Don't let the news of the overall outlook for Canada trouble you. Our provincial situation will provide a nice cushion for the upcoming year. That's all for now!  

Posted by Admin Staff on
Email Send a link to post via Email

Leave A Comment

Please note that your email address is kept private upon posting.