Sixty per cent of Canadian housing markets anticipated to be balanced in 2023

RE/MAX Canada expects average residential prices to decrease by 3.3 per cent 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 per cent
• Price growth outlooks are anticipated in Atlantic Canada markets, with average residential sale prices expected to increase by eight per cent in Halifax and four per cent in St. John’s in 2023
• 60 per cent of regions in Canada are expected to be balanced markets in 2023, according to RE/MAX brokers and agents
• 73 per cent of Canadians still say that home ownership is the best long-term investment they can make

Western Canada Highlights Below:

Calgary, Alberta

Much like Vancouver, Calgary’s marked is balanced, but is expected to shift into seller’s territory in early 2023. First-time buyers are driving demand in the region, with move-up and move-over buyers trailing close behind – a trend that is expected to continue into 2023.

“First-time buyers dealing with higher interest rates have lowered their expectations and downsized their purchases, going from single-detached homes to duplexes or apartments,” said Richard Fleming, from RE/MAX Real Estate Mountain View. “We’re seeing first-time buyers that still want to get into real estate, they’re just adjusting what that looks like.”

The average residential sale price increased by 13 per cent from $585,025 in 2021 (January-December) to $658,277 in 2022 (January-October). Condos are currently the dominant housing type in the region, with single-detached homes expected to drive the majority of sales in 2023, as buyers seek additional living space. Inventory is anticipated to remain low in the first quarter of the year, before steadily increasing through the third quarter and finally sloping down again in the final quarter of 2023.

Home sales are steadily increasing and are expected to remain on the rise in 2023. The luxury market has decreased its pace but is likely to pick back up next year. The average residential sale price in Calgary is anticipated to increase by seven per cent in 2023.

Edmonton, Alberta

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 per cent 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.

However, 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 per cent in 2023.

Additional key insights from the Leger survey:

• Although rising interest rates have cooled/stabilized the real estate market, 45 per cent of Canadians are concerned that further increases will impact their ability to engage in the real estate market in 2023
• 54 per cent of Canadians believe that the two-year ban on foreign investors purchasing property which will come into effect on Jan. 1, will increase the availability of affordable housing for local homebuyers
• 15 per cent of Canadians are considering moving to another province in 2023 to find better housing affordability and liveability
• 54 per cent of Canadians feel confident that their financial situation will remain steady in 2023

To view complete RE/MAX Canadian Housing Market Outlook Report, click here link below.

https://blog.remax.ca/canadian-housing-market-outlook/