Aggregate home prices will end 2023 down slightly for the year, Royal LePage projects

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Aggregate home prices will end 2023 down slightly for the year, Royal LePage projects
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\u0027After nearly two years of record price appreciation ... the frenzied housing market overshot, and the inevitable downward slide or market correction began\u0027

The real estate firm’s 2023 Market Survey Forecast, which is being released Tuesday, predicts aggregate prices will drop by one per cent to $765,171 by the fourth quarter of 2023, a decline that could be worse given the effects of rising interest rates, declining affordability and a housing supply shortage. The median price of a single-family detached property will also decrease by two per cent to $781,256 while the median condominium price is projected to rise by one per cent to $568,933.

This contrasts with a traditional recessionary environment, in which job losses snowball into missed mortgage payments and foreclosures, leading the market tobe flooded with new listings. However, in Canada’s post-pandemic period, most people have kept their jobs. Soper believes that would-be buyers sitting on the sidelines have not been forced to exit the market.

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