According to a recent report from TD bank, the average home price in Canada may drop by 20 to 25 per cent from its peak earlier this year. This price drop is anticipated between now and the first quarter of 2023.
The report also predicts that over the same time period, there will be a 35% decrease in the number of home sales.
Rishi Sondhi, the TD bank economist, says the expected price drop is an “unprecedented decline,” which dates back to the late 1980s when the data first emerged. Still, it comes after an unequally unusual surge during the pandemic.
The report suggests that the decline in housing prices across the country would only partially reverse the 46 per cent gain experienced during the pandemic.
Further, Sondhi explains that the prediction can be better described as a market recalibration rather than something severe.
In the long run, TD bank continues to be optimistic about the housing outlook since it believes that steady population growth will support the primary demand for housing.
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